Replies to This Discussion

Permalink Reply by Spring Branch,mineral owner on February 1, 2019 at 6:33

My Jan. 25, 2019 check from XTO contained royalty from the BSI Keydets B 01 well as follows:

Gross Volume:  184,132 mcf           Price:   $3.52

The BSI Keydets DU #H 1 well produced 88,247 mcf       Price $3.53

Permalink Reply by jffree1 on February 1, 2019 at 7:50

Thanks, Mike. That comports with what they reported for NOV...272,379 so now we know that it was a two well total.

They just reported December production @ 484,043 (combined two wells).

Permalink Reply by Mister Sunday on February 1, 2019 at 8:38

Wait! I found it!

B1 for November is the same as yours.

H1 for November was 88,247mcf @ $3.53

H1 for October was 140,977.02mcf @ $2.21

H1 for September was 17,122.72mcf @ $2.90

H1 for July was 62,038.55mcf @ $2.69

   I don't know what the deal is, I've got twelve pages of stuff in this statement.  Most of it is the same month twice with only a few cents difference, but then there's April of 2016 where they just took the whole thing away from me.  There are two Spots for severance tax in the same month that they took from me as well.  This is just about the most convoluted bunch of BS I've seen in a while.

Permalink Reply by Mister Sunday on February 1, 2019 at 6:43

Hmmmmmm... I guess it's time to take all my stuff to the lawyer.

Permalink Reply by Spring Branch,mineral owner on February 4, 2019 at 5:12

Mister Sunday,

I believe most of what you are seeing are adjusting entries (debits and credits).    I believe your $$$ might be better spent initially going to see an accountant/CPA to review your monthly royalty statements than going to see an attorney.  Just my thoughts!

Permalink Reply by Mister Sunday on February 7, 2019 at 5:09

Thanks for the advice.

Permalink Reply by Hale Yayuh on February 7, 2019 at 8:01

Any money you spend on getting that check stub 'interpreted' is really a waste of money because this is common practice, a practice I detest, but it is what it is. If you get this one 'interpreted,' more will occur. They do this all the time. Just about every operator. I have seen them make adjustments years later and the printout so thick, it has to be mailed in a box.

Bear in mind, most of this stuff is pennies. They will zero out a line item that was on a previous statement and add a new line for the adjustment of a few pennies. I never understood how they could make price adjustments months and years later. An audit caught it or what? Whatever it is, it is common. It seems it happens with gas leases, not near as much on oil.

Permalink Reply by Mister Sunday on February 7, 2019 at 8:50

Thanks for the information.  I've seen this several times before, and you're right, it's usually only pennies. Except for this last one they took a whole month out from April of 2016. 

Permalink Reply by Skip Peel - Mineral Consultant on February 7, 2019 at 10:01

Are you guys talking about interpreting a "check stub", or a royalty statement?

Permalink Reply by Mister Sunday on February 18, 2019 at 8:38

I guess if you get a check for a royalty payment, they would be one and the same, right...???

Permalink Reply by Skip Peel - Mineral Consultant on February 18, 2019 at 9:00

Yep.  Should have the same categories of volumes, payments and deductions.  Spring Branch is right.  You should sit down with someone that can help you and an accountant/CPA familiar with royalty income would be cheaper than an O&G attorney.  In Texas operators can change the size and shape of units and of course that changes everyone's decimal interest.  Other times it's simply accounting mistakes.  Mistakes are common.  You just want to understand your royalty statement to the extent that you don't get tagged for their mistake.

Permalink Reply by Mister Sunday on February 21, 2019 at 9:02

Check details for December royalties lookin' good.  Now if they"ll just drill three or four more.  Does anybody know how many wells they generally put in on the original site before they move across to the other corner of the plat and start drilling there?  It would sure be nice if they could put some more in without shutting all of them down.

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