Replies to This Discussion

Permalink Reply by Connie Whyte Pender on July 12, 2012 at 5:26

As of July 12, 2012-No info or royalties from our well.

#244356 Sec. 18/T16N/R13W

Permalink Reply by DrWAVeSport Cd1 on July 12, 2012 at 7:42

CW,

Sonris Lite Info as of 7/9/2012 per LA Serial 244356:

http://sonlite.dnr.state.la.us/sundown/cart_prod/cart_con_wellinfo2

You should receive Division Order within the next 90 days...

For more information...Call BHP Billiton/PK @ Phone numbers listed on Sonris Lite "Organization Name" tab: 

Tulsa:  918-497-4562, 918-499-1301

Shreveport:  318-987-7568

Remember, LA's Sonris Lite is where you can follow your well's status and production numbers...

Well Serial 244356:  COMPLETED 06-17-12; GAS; HAYNESVILLE RA; 7004 MCFD; 171 BWD; 14/64 CHOKE; 877#CP; 7506# FP; PERF 11456-15890' MD

Well IP'd @ 7 Million CF a day.

 

 

 

Permalink Reply by Connie Whyte Pender on July 30, 2012 at 6:35

OK-THANKS..WE WERE TOLD TO JUST INSERT OUR SSN # AND DON'T SIGN THE DIVISION ORDER. WHAT ELSE DO WE DO?

Permalink Reply by DrWAVeSport Cd1 on July 30, 2012 at 9:41

CW,

IMO, You need to send your SS#(s), DO information, Registered Mail, Signed-Returned Receipt.  Keep all information/documentation, coming and going, in triplicate...as, per my experience, it may take several mailings before Producer gets things "straight."  Sending correspondence/documents Registered-Mail, Signed-Returned Receipt, gives you the proper proof documentation in case you would ever need any help from the "Courts."  It costs a few $$, but well worth your time and trouble. 

Be sure your mineral ownership percentage/property acreage is correct on Division Order, e.g., .0346710 in a 640 acre unit...(just an example)  Make sure this is correct.

Be sure to keep your "Owner" and "Property" numbers where you can easily reach them.  And, as GHS "Henry" has stated earlier on this site, keep your mineral records and associated information with other "important" papers/documents so you will have a "recorded history" for any of your future beneficiaries.  It will save your successors many hours of searching and $$$.

Keep track of your well's production numbers on Sonris Lite. 

And Good Luck to you.  You should be receiving your royalties/revenue checks within a 120 day period after initial production, more or less...  Please note that some Producers have minimum royalty revenue dollars that have to be met before they issue checks.  I believe CHK's is $50 minimum accrued.

Here's Hoping $4/mcf.    $3.215 @ close today. 

DrWAVeSport Cd1 7/30/2012  

 

 

 

Permalink Reply by Connie Whyte Pender on September 27, 2012 at 7:31

Well today is September 27, 2012 and still no DO have arrived....

Permalink Reply by DrWAVeSport Cd1 on September 27, 2012 at 7:58

CWP,

Have you called and sent a "demand" letter to BHP Billiton?

Get on the phone asap.  Ask them where your DO is.

If you don't get any attention to this matter... Forward your concerns to the LA Dept. of Conservation, call them and send them a copy of your demand letter including your Well's Sonris Lite information. 

Don't wait. 

"The squealy wheel gets the oil...nat gas."  LOL

Good Luck. 

 

 

Permalink Reply by Connie Whyte Pender on September 27, 2012 at 8:21

Got the phone number-Thanks sooooooooooo much!

Permalink Reply by HBP on September 27, 2012 at 10:28

If this was completed in June, then it is probably not time for a demand letter just yet - unless your lease has a 120 day payment stipulation which would be an added clause (not bath form).  Also, it is early to be sending concerns to the DOC.  Just my humble opinion (No offense DR. WS).

I would call (your lessor), try to locate the specific DO analyst for your unit and inquire about the div. order.  Also see if they have a unit plat yet they could send a copy of for your files.  If there are small lots or neighborhoods in your unit (which may be likely in 16-13) then you can bet some of the smaller tracts are going to lag behind on DOs and getting in pay (unless they already have the title opinion).

Just my opinion to help deal effectively with the companies.  Now if it gets toward 5-6 mos, you are getting into demand letter territory, and depending on the size of your interest, an oil and gas professional would be recommended to ensure prompt and then accurate payment. 

Permalink Reply by Connie Whyte Pender on September 27, 2012 at 10:34

Thanks-We are just so ready to get started! How would we all found out who the DO analyst is? I guess we will have to wait a little longer....Thank you for your time.

Permalink Reply by HBP on September 27, 2012 at 11:53

Call in and request to speak to the DO for that unit, or submit a request through their royalty owner line.  I would give you a name, but I do not know the one for that unit.

Also, is your lease with Petrohawk?  Just wanted to confirm, if not you will want to contact your lessor directly.

Permalink Reply by DrWAVeSport Cd1 on September 27, 2012 at 14:50

HBP,

No offense taken here.  

The "demand" letter (1) is a written document that the state of LA requires for payment in cases where lessors don't receive their royalties as it starts the clock officially for giving Lessees a 30 day notice to respond to Lessors, and (2) LA requires Lessors to give a written notice to Lessee prior to any legal action.

HK and BHP Billiton both need to receive the "demand" letter, IMO. 

The "demand" letter just gives the necessary Lessor information to a "not so respondent" Lessee and again, starts the clock running which is quite important where "contracts" are concerned.  The "demand" letter is just a "notice" to pay, it does not represent any negative connotation to a Lessee in any way.  

The earlier, the better, IMO. 

This well has been in production since June 17, 2012, over 90 days.  Enough time for DOs to be sent out.  Even Chesapeake Energy got DOs out to me within 90 days of production and CHK practices delay, delay, delay all day long.  

Failure to send out and/or receive back Division Orders...in LA...is not conditional for payment by Lessee royalties due Lessor...  They must pay with or without DO.

DrWAVeSport Cd1 9/27/2012  

 

Permalink Reply by HBP on September 28, 2012 at 3:57

Dr. Wave

I understand your point, sometimes 90 days can feel like a long time.  And I am familiar with demand letters because many leave my office each month when necessary for clients.   I see them more as the step after I speak to the DO to give them a heads up.  Also, the lessee can simply respond to your letter that they don't have title yet, there is a survey issue, or simply that they don't have the man power at the time to address it (I actually got the manpower one as a response once, and IMHO that did not qualify as "reasonable" under 31:138 - but the owner did not want to sue and it got cured after a 2nd letter expressing that opinion).

I will concede that you can certainly send one whenever you choose to, and it will likely get a response.  But in some cases an owner (or attorney) must deal with the same DOs and landmen over and over again, so I don't want to wear them thin with formal demands when I know they want nothing more than to get their unit in pay asap.  I use the demand letter when I feel like my next step is drafting a petition (or when they plainly ignore an owner's "heads up" call/email).

All good thoughts and ideas on the thread - so that is my two cents

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