Has anyone here had any experience with getting paid by swepi?  Have been waiting 6 months for first check since production started.  Encana(50% owner) has been paying for the last 3 months.

Views: 521

Reply to This

Replies to This Discussion

W V landowner check the name and number on the next page,maybe you can find out something from her
From a non-oil-and-gas lawyer who knows to engage an expert when entering into an oil and gas lease: A well-drafted lease will specify the time period for payment of royalties (commonly by the end of the second month after production and sale, although I try to negotiate the period to be by the end of the first month after), and provide for strong and enforceable remedies for the lessee's failure to make timely payment.  An assignment of the lessee's rights and responsibilities under the lease should be prohibited without the consent of the lessor; if such a provision exists, there is no question about the named lessee being the party responsible for making payments, even if the lessee has entered into an operating agreement with another party. It is so important to get the services of a good O&G lawyer up front before entering into a lease.

Ol' Vet,

You are so right.  But, what's a person who owns 2 acres to do?  Even if his lease calls for payments within a certain time, and spells out penalties, he's still hosed.  It's simply not cost-effective to hire an attorney at $250/hour and go to court to force on-time payments.  It seems to me that the system fails the little guy in these situations.

I have dealt with both companies. They have paid "on time"---but I don't think that it is always the case. I know that I have been waiting on CHK seven months now.


© 2020   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service