Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on January 24, 2018 at 3:48

Only what I have passed along previously.  The "as drilled" report for the well had an error.  Range waited what I consider to be too long to turn in the report and then the Office of Conservation staff did not catch the mistake right away.  I visited with the staff at the Shreveport District office and they confirmed that the Baton Rouge staff had found the mistake and requested a corrected form from Range.  That was about two months ago which I think is sufficient time for a correction and reporting of production back to 12/4/16.  I will see if the Shreveport staff can update us on this incident.

I think this is an isolated instance of this particular problem although Range certainly appears to have others.  If there are additional instances of completed wells with no production reported six or more months after first production, I would appreciate hearing about them regardless of location and operator.

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Permalink Reply by john goodday on January 24, 2018 at 4:41

I think that you are correct about Range and most operators in LA - They do seem to get the production info within 3 or 4 months of actual - however, this particular well has gone on for almost 14 months - way past time for Range to report production.

Thanks very much for your help and whatever else you may find.

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Permalink Reply by Skip Peel - Mineral Consultant on January 24, 2018 at 12:09

I found this.  The corrected "as drilled" well plat.

MRD%20-%20LCV%20RA%20SU%2054%3B%20Weyerheauser%20Co%2015-10%20HC%20...

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Permalink Reply by john goodday on January 24, 2018 at 13:39

Skip - Thanks for that corrected - "as drilled" well plat.  Now that the State of LA has received the correct plat from Range - would you believe that production information will be forthcoming?

Greatly appreciated

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Permalink Reply by Skip Peel - Mineral Consultant on January 24, 2018 at 13:41

From the date on the plat, I think the production may be available on SONRIS mid-February.  Let me know when you get a royalty check.

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Permalink Reply by Skip Peel - Mineral Consultant on January 24, 2018 at 17:01

The first check should be a big one.  Check to see if Range pays interest!

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Permalink Reply by Skip Peel - Mineral Consultant on January 29, 2018 at 6:08

I received this email from the state this morning.  Please monitor and let me know when the production is entered in the database.

You’re welcome. Also, the LUWs have been assigned. 617994 for the LCV RA SU54 and 617995 for LCV RA SU61. I’ll let the operator know you’re anxious for the reports too in hopes of getting the production in SONRIS quicker.

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Permalink Reply by spl on February 2, 2018 at 3:36

Can you tell me if I am reading this correctly.  The well was completed in December of 2016 and is still not reporting or paying royalties?

I have been watching for SONRIS reporting for RRC wells completed in Dec 2017 and anticipating royalties this Spring.  Am I way off?

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Permalink Reply by Skip Peel - Mineral Consultant on February 2, 2018 at 3:41

As far as I know, Range has not paid any royalties.  Then again I'm not a royalty interest in the unit.  This is a specific instance of a mistake in a report required by the state before issuing an LUW code number.  That code number is required for the company to report monthly production to the state.  As far I know a state LUW code is not required to pay royalty.  If Range has not paid royalty then mineral lessors in those sections should be contacting the state to complain and should demand interest on their royalty when payment is eventually made.  spl, are you a royalty interest under this well?

Permalink Reply by spl on February 2, 2018 at 4:19

I am not a royalty interest in the mentioned Wey #1 well in Jackson Parish but several others in Lincoln Parish that were completed in Dec 2017.

You get so little information from RRC that all I have to go by is SONRIS and the RRC Owners Page.

It's hard to know the timetable.

Permalink Reply by Skip Peel - Mineral Consultant on February 2, 2018 at 4:38

RRC doesn't get in any hurry to report production and I don't get too concerned until 120 days have passed since first reported production date and no production is available in the database or I receive reports that no royalties have been paid.  No reported production or paid royalty beyond 120 days post first production raises questions that should lead royalty owners to contact the company.  If no reasonable response is received within 30 days of a formal request by certified mail, I would contact the state and make a formal complaint.  The state can not address problem of which they are unaware.  If enough mineral lessors would contact the state I think the relevant regulators would be after RRC, or any other operating company, for a full explanation and a commitment to get those problems rectified pronto.

My queries as to the functions of state regulators is revealing that royalty interests are too passive and do not effectively communicate their problems.  Although I personally believe that budget cuts have materially impacted the ability of the regulators to do their jobs, I find that when I bring up problems and properly document them, the staff responds.  They are just too over worked to catch every instance of non-compliance and O&G companies know that and choose to game the system.  Until mineral lessors get sufficiently fed up and frustrated, they do not complain of companies taking advantage of them.  I always wish to say plainly that mineral lessors should take the time to know, or ask, what is and what is not considered non-compliance and to understand that there are rules and limitations that they might not agree with 100%.  Complaints only carry weight when done properly, in the correct context to the correct authorities.  That is one of the benefits provided by knowledgeable GHS members.  Complain loudly and persistently but do it right and you may find it gets results.  I often do.

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Permalink Reply by Skip Peel - Mineral Consultant on February 2, 2018 at 9:19

The monthly production is now entered in the database for the Weyerhaeuser 15-10HC.  Thank you Office of Conservation/SONRIS staff.

http://sonlite.dnr.state.la.us/sundown/cart_prod/cart_con_wellinfo2...

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