Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on June 30, 2016 at 14:13

 You're welcome, Paula.  You're not the only mineral owner to recently get a check.  I've heard from several.  I doubt that Mr. Bowman's suit had anything to do with the timing of the payment.  The first royalty check is usually the highest and often is payment for more than thirty days of production.  What are the dates for the production covered in your first check?  And how many wells are you receiving payment on?

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Permalink Reply by Paula Davis on June 30, 2016 at 14:17

Thanks, Skip.  I don't understand all the legal and minerals, it appeared to landowners who don't know that much, LOL, that we received our checks after lawsuit was filed.  But we are happy.  Thanks, again.

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Permalink Reply by Skip Peel - Mineral Consultant on June 30, 2016 at 14:31

There are an unusual number of MRD wells that have been in production for months without paying out royalties.  For that reason it is wise to look at the production dates on your royalty statement.  If the well has been producing for five months, as an example, your check would likely be larger than you anticipated.  However, if that is the case, you should be prepared for your next check, the one for a single month of production, to be much less.  The lawsuit in question is poorly constructed and much of the contentions will not find any case law to back them up.  It was obviously not drafted by an experienced O&G attorney and therefore is of little threat to MRD.  IMO there will be other suits in the future by experienced O&G attorneys that will hone in on the deductions portion of the the complaints.

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Permalink Reply by Gerald Mitchell Moody on June 30, 2016 at 14:58

Skip, who is a good oil and gas firm in North Louisiana?  Would appreciate a couple of names.  Thanks.

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Permalink Reply by Skip Peel - Mineral Consultant on June 30, 2016 at 15:03

My O&G attorneys are Davidson,Summers, APLC in Shreveport.  They are one of the few LA firms with major O&G practices that have few conflicts of interest because the bulk of their O&G clients are mineral owners, not the operating companies.

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Permalink Reply by Gerald Mitchell Moody on June 30, 2016 at 15:04

Thank you.  Are they downtown Shreveport?

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Permalink Reply by Skip Peel - Mineral Consultant on June 30, 2016 at 15:08

You're welcome.  Yes, their offices are in the Beaird Tower, 330 Marshall St.

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Permalink Reply by Mark on July 1, 2016 at 9:35

It seems to me if a Royalty Owner has 'Capital Cost' deductions for pipeline expenses, etc. then they are part owner of that system. So, the Operator of that system should give the Royalty Owner their share of revenue not just the expenses. Revenue/fee's, if any, from marketing, gathering, transporting their gas or a third parties gas. What about if the system is sold? Do the Royalty Owners get to share in that money?

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