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Permalink Reply by smith1 on November 9, 2011 at 3:39

We rec'd our DO from Petrohawk within two months and our first check arrived before we had even sent the DO's back in. Petrohawk have been the easiest and nicest to deal with.  Most of my questions/inquiries were done actually through emails and I got immediate responses.

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Permalink Reply by Roy Gunter on November 11, 2011 at 6:18

My well started producing and they began selling on the 7th of Jan 2011....I am still waiting...They cannot even tell me when I may get my D O...

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Permalink Reply by DO Analyst on November 17, 2011 at 8:50

A piece of advice is to call Petrohawk, if they tell you that there are title issues, ask what they are.  Many times you will see interest in suspense for minor title issues you can help clear up.  If you own property in a section that is considered a "townsite", meaning there are several owners living in subdivisions, take this into consideration as it will take more time to cure the unit title. 

The reason I advise to take these steps, if you send a demand letter, you could get a response that the title is in question, at which point it will be necessary to wait until all title is cured.  Partial units are paid when the ability is there.  Some sections are easier to get title than others.  I would say first step is try to work with the company, but by all means do not be afraid to send a demand letter.  Many times this will force the landman handling that section to cure your title if possible.  The analysts are at the mercy of the title we receive, however, keep in mind that the analysts are here to help the land owners, we take all information from all different areas and process royalty payments.

One other point of emphasis, if you do receive an estimated payment, keep in mind that this is estimated.  If the final title is rendered and you own less that what was estimated, your royalties will be held until the overpayment is recouped. 

Just wanted to drop these few tidbits of info, but as you all know, demand letters will get results and as an analyst, we actually appreciate those because it makes the land department get us some kind of title.

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Permalink Reply by HBP on November 17, 2011 at 12:50

Great advice by DO Analyst of course.  If you can work with them - then by all means do it.  But if they are putting off payments for months on end and there is not a specific curative issue, then begin to look toward the article 137 demand in the code (and follow the requirements). 

If your lessee is Petrohawk, then it is likely that they will try to pay you, help you or pinpoint a specific curative issue (in my experience so far). 

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Permalink Reply by Roy Gunter on November 17, 2011 at 15:50

xto is the company with this well...once upon a time, I heard they were a pretty good company to deal with...seems things may have slipped a bit..

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Permalink Reply by Bigfoot on November 17, 2011 at 13:35

A payment clause should be in the lease to start with.  All oil producers would like to see 180 days; but, that is rediculous.  What ever the case.  No producer needs more than 60 days from sale of first production.  Most leases have "something similar to this:  "All royalty payments on actual production are due and payable within 60 days after the end of the month in which the production occurred".  Any payments not received in this time period are subject to a penalty (pick a good % number) as well as at least 10% interest on all $$$'s not received in this time period.

Hope this helps!

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