landowner

Adjustments to revenue statemens older than 3 years by BPX

Is anyone else getting adjustments to their revenue statements that are older than the three year subscription limit from BPX?

Last month they adjusted the amount from September 2022.  I sent an e-mail but have had not reply.  This month they adjusted seven different months ranging from August 2019 to July 2021.  The adjustments in total are too small to justify a demand letter (the last statement was less than a dollar in total). It is not all wells in a section just a few.

I want to make sure that this does not continue to happen. Should I send them an e-mail each time or wait to see if it happens again? Anybody have any suggestions?

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant 3 hours ago

Question:  Are the wells that are not adjusted "H" wells?  Are the wells that are adjusted "HC" wells.  Have you checked your statement decimal fraction against the unit survey?  We went through a widespread adjustment period when the first HC wells were being drilled.  I haven't heard any such complaint since that period.  If you want to know your options and the possibility that you could prevail, spend a few hundred with an experienced O&G attorney.  You should check your decimal yourself using the unit survey(s) first.  You should also be aware that demand letters sent by mineral lessors or UMIs are almost always ignored.  Operators pay more attention to a demand letter that comes from a known O&G attorney but are prone to ignore those also unless that attorney has brought suit against them and won.


landownerPermalink Reply by full name 2 hours ago

Hi Skip,

Yes the wells are HC wells.  The decimal fraction has not been adjusted.  I actually have had excellent responses with demand letters sent from me as I always include a statement directing their attention to La Mineral Code Articles 137-140 which provide the receiver 30 days to supply the requested funds or show cause why that can not be met, after which the receiver of the letter will be responsible for all damages and attorney's fees that result.

I have used this with BPX before and several other O&G companies. It worked well as long as I was very specific (i.e one time I used the word deductions meaning that money was deducted from the statement.  They replied that that there were no deductions so I reworded the letter to say that the amount on the check was reduced and there was not explanation).  I usually get a call from an attorney, they immediately ask for more time, we have a discussion, I grant the request if there is a good reason and the issue is resolved within the agreed time frame.  The issue here is the actual postage to send demand letters is greater than what I would receive (My time is free.  I am just a retired old engineer.)


Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant 24 minutes ago

Do you have the unit surveys?

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