Petrohawk-Suspension of Royalty Payment/Lake Bistineau Conflict

We have  been receiving royalty payments for about 7 months from Petrohawk, then we receive letter re: Suspension of Royalty Payment due to the conflict of  the vicinity of the bed of Lake Bistineau around first of June 2012. They did not direct deposit our June 2012 payment.  We e-mailed them and requested copies of the "meander line", surveys, etc.  Next thing we know, our check was direct deposited into our account. Great,,,,,,,,we thought......Several of our neighbors notified us that they had also received letters that the "suit" had been settled and they would also begin receiving their royalties.  Well, I checked my online checking account and to my amazement and horror, Petrohawk had reversed the direct deposit (WITHOUT any notice whatsoever to us!!).  It was a considerable amount of $$$$. I think that Petrohawk could have notified us before the reversal of payment,,,,,,,,,,,,We had already paid this $$$$ out. What a problem this has created for us.  Not sure what or if it this has happen to anyone else? I can only assume that there is not much we can do at this point except let the attorney that did our O & G lease handle it......

Tags: Bistineau, Conflict, Lake, Petrohawk, Suspension, of, payments, royalties

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My understanding through my lawyer that is working with Petrohawk on my behalf says that the State of Louisiana has dropped their claim so you should get your money. This has only happened in the last couple of weeks. Good luck.

Well I am finding out petrohaw is about as big a crook as Chesapeake. good luck.

After dealing with Petrohawk on one lease that is the last one I will do with them. 

This whole company seems to have big problems.

True Texan:

For years, the upside to HK was that they had the expertise to bring in some very good wells.  And they proceeded to do just that on our land (and generally in the HA in NW La.).

Yet they also negotiated quite hard to keep the bonus down and the good clauses out of the Exhibit A.  A number of their landmen were Miss. lawyers.  Tough guys to talk to.

Plus, as you seem to know, over these last couple of years, their interface with royalty owners has deteriorated and has gotten darn iffy at best.  Indeed, when big-steroids BHP took them over, the excessive deductions on the royalty statements skyrocketed, along with poor explanations (with the HK land office seeming to want to duck and cover).

Finally, the La. Attorney General was asked to start an investigation.

The contact info at the AG's office is:

Ryan Seideman 225-326-6085

SeidemannR@ag.state.la.us

 

 

 

The issue is probably that by law the state owns the bottom of all natural, navigable waterways and they are claiming that Bistenau meets thos criteria. If the state owns the bottom,mthey own the minerals under the bottom. And, since the state cannot divest itself of mineral rights nor lose land through acquisitive prescription, if your land was ever on the bottom of a natural, navigable lake then the state will claim the minerals, if not the land. These cases get hairy because a jury has to decide if something was navigable natural waterway in 1812 when the Louisiana became a state.

Bistineau is one of several "Raft Lakes".  Swampy lowlands that became inundated as The Great Raft moved up the Red River and blocked the main channel.  It therefore varied greatly in depth over centuries.  When inundated, it was navigable.  Such was the case at the time it was acquired in the Louisiana Purchase, 1803.  The Great Raft was broken up starting with Henry Miller Shreve and completely eradicated by the Corp of Engineers in the 1870's.  Without the Raft, it reverted to a swamp.  The lake is formed and maintained now by a man-made dam.  So the legal question has been, navigable or not?  And when?  The contour line of the normal high water mark varies greatly from the swamp to the lake. 

So, many questions still, how were we able to purchase our acreage to begin with 15 years ago? Was the title opinion done incorrectly? Do we really own our land? Does the title insurance have any responsibility to reimburse us? And I am assuming this could take years to decide??? All questions ---- I know that, most likely, will not be answered, any time soon.

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