Are the Adamas Royalty Checks and Deposits running late for May?

I have active Wells in three Counties, however haven't seen any Royalty Payments for this month

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Neither Adamas nor any O&G operator is likely to respond to those questions.  They might - if you sued them.  I do not recommend doing that.  Aethon's payments were regular because they agreed with the title review and Division Order underlying those payments.  I've mentioned many times that there can be mistakes and problems with both.  If I were Adamas, I would be scrutinizing those files to make sure I was paying correctly and not liable for any mistakes that Aethon or a prior company made.  It is now their responsibility, their liability.  The early Haynesville rush caused many companies to cut corners and employ staffers brought in from other states that were not familiar with Louisiana mineral, civil and case law.  The accounting of many wells paying many lessors and unleased mineral owners is a big job and a headache.

Thank you Skip

You're welcome, Bill.  Hang in there.

This is getting interesting, it appears Adamas is significantly reducing our percentages of interest on all of our holdings. Adamas is currently sending out all new Division Orders for our holdings on our Nolte, Chinaberry and Phelps Units in San Augustine County where there is a lot of activity. .Getting dozens of Companies interested in purchasing our holdings.  

The Adamas Website is still not up and calling appears to have no impact or effects. Do you know if this is a one off on just us or are other Owners seeing similar issues?

Still no May payments and it appears there will be no June payments. Again, any input is appreciated. 

It sounds like Adamas is conducting Division Order reviews.  Since it is for all three of your units, this review may be across all of the Aethon units that Adamas acquired.  If it was just one of your units I would have speculated that some mineral interest discovered a mistake and sent a demand to have their decimal interest corrected.  To get a straight answer, it may require an experienced O&G attorney to get the details.  As to anyone else seeing this same issue, you should post this on the San Augustine group page.

https://gohaynesvilleshale.com/group/sanaugustine

I would be more than happy to make sure any and all mineral and royalty owners are being paid correctly based off unit surveys (which are never filed with the LDNR) on time, or thereafter. Skip, what else can be done to file the unit surveys quicker? They need them to ultimately pay the division of interest. I am also seeing more than 120 days to pay first sales.....and not paying any interest on custom lease addendums that state otherwise... While not carrying 2 cents.

George, in 2018 I lobbied the state to force compliance with the regulations regarding unit surveys.  In order to get some action, I spent the better part of a week researching how many surveys were delinquent.  There were 850 past the mandatory filing date (90 days after first production) with the majority being 8 to 10 years delinquent.  No one at DNR/OOC would give me the time of day.  I went up the chain of command until I reached the governor's office.  That got some action.  Compliance orders were sent to all the HA operators requiring them to submit 12 surveys per quarter, 48 annually until all delinquent surveys were submitted.  Covid put a slow down to that but the incidence of missing unit surveys today is much less than it was then.  I still run across a missing survey from time to time.  I posted how to request a missing survey back in 2021.  I'll attach it again here.  I got lucky and John Bel was governor.  I'm unsure if the present administration will be interested in assisting mineral owners.  Note that Gavin Broussard is no longer the staffer to send a request to and there is no longer a staff directory on the C&E website.  I'll try to find out who fills that position now.

Unit%20Survey%20Request%20Instructions.docx

Unit%20Survey%20Request%20Form.docx 

From the staff at C&E.

Good morning Skip,

 Garrett Fredrick is the Manager of the Office of Enforcement, State Orders Division, & would be the best point of contact for requests involving missing unit survey plats. His phone number is (225) 219-9860, & his email address is Garrett.Fredrick@la.gov. He is currently out of the office today but will return Monday morning.

 Our mailing address is:

 Louisiana Department of Conservation & Energy

617 North Third Street

Baton Rouge, LA 70802

 

However, a mailed request is not necessary. We also accept requests for unit survey plats by email. If you can provide the LUW code or any other information you have regarding the unit, I would be happy to check our records.

  

Randall Pizzolato
Petroleum Scientist 3
Louisiana Department of Conservation and Energy
Phone:
225-342-5548 | Email: Randall.Pizzolato@la.gov

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