Replies to This Discussion

Permalink Reply by Grillin' - MmmMmm on September 3, 2009 at 1:42

Very good point!! But having non-operating partners is usually a good check.

It appears from reports I'm seeing that the SEC really wasn't watching old Bernie! Now if he would have had an EX-wife, then we would have known all that money was going south!

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Permalink Reply by Mac Davis on September 3, 2009 at 6:13

Does anyone believe the LA Department of Conservation is really watching out for the mineral interest owner? It is an interesting point about the tax assessor. I'll bet the tax man watches the accounting a lot closer than the agency that is supposed to be protecting the mineral interest owner. I wonder if the two agencies cross-check numbers with each other.

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Permalink Reply by The_Baron on September 3, 2009 at 7:23

The tax assessors are on the parish level. They are concerned only with the property and ad-volarum taxes on equipment.

LDR (louisiana dept. of revenue) collects severance taxes. They verify their reports with productiion data on SONRIS. Any discrepancy is followed up on.

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Permalink Reply by The_Baron on September 3, 2009 at 7:26

By the way, I am in a crappy nit-picky mood, but its the Office of Conservation, in the Department of Natural Resources. Conservation is one of the few Offices that do not have an Assistant Secretary, but a Commisioner. Its a hold over from the old days.

Permalink Reply by Mac Davis on September 3, 2009 at 7:53

Sounds like The Baron needs a good injection of ethanol.

As always, thanks for the info. I hope you're right that the state checking on their own profits follows up on production companies cheating on production reported to mineral interests.

Permalink Reply by The_Baron on September 3, 2009 at 8:11

Thats not what I said. The state verifies production values reported to the state. The mineral intertest owner can verify their production through the public records .

I do believe you are fear mongering. As someone who works for an operator, and has dealings with many others, I happen to believe the overwellming, vast majority of operators (99.9999999%) accuratly report production. The methods for metering gas are required by law.OIl is estimated daily by the pumper, and all quanities removed from the lease tanks are carefully measured and well documented (the lease operator wants to be sure they are paid for what they are produced, just as the buyer only wants to pay for what they receive).

Permalink Reply by Mac Davis on September 3, 2009 at 19:11

Not fear mongering, I'm just a professional paranoid. I get paid money to be paranoid.

I always look for the risks and try to minimize them. It's saved my *** many times. I suspect that a lot of people on this site wish they'd been a lot more paranoid when they were approached to sign a lease.

Permalink Reply by The_Baron on September 3, 2009 at 3:37

It appears that this discussion has totally left the original question.

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Permalink Reply by Bobi Carr ("parker") on September 3, 2009 at 16:17

Baron,

I think it would be a great idea to have the meters on video as discussed. This would even be beneficial to the company to the extent that there wouldn't be people out endangering themselves and possibly equipment trying to check the meters.

I waited and waited for results for a well that I had been hearing lots of rumors about. I drove down to the site with intentions of taking a peek. I chickened out because of the size of the no trespassing signs. I was later told by a oil field service worker that HK boxes are locked anyway. But I can imagine that a lock and a sign wouldn't stop some people.

It just sounds like a great idea to me.

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Permalink Reply by Les Bamburg on September 3, 2009 at 16:43

Parker, operators already remotely gather production data from many wells. There is really no danger to operators or equipment as it would just consist of a wireless download of data or reading a digital readout. Operators still need to visit the well site just to make a visual check of equipment.

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Permalink Reply by Bobi Carr ("parker") on September 4, 2009 at 1:52

Les,

The danger that I was talking about was the general public trying to get in there to view the meters. If it were available through remote viewing we could just look for it on SONRIS or on the operator's web site.

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Permalink Reply by Les Bamburg on September 4, 2009 at 3:09

Parker, sorry for my mistake.

I am supportive of providing royalty owners with access to daily gas volume data via a secure website.

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