New Shell (SWEPI) Division orders in Desoto...
We have a lease with EXCO for our wells in Desoto parish and we have been receiving royalties every month for awhile. This week we received division orders from Shell (SWEPI). The letter from Shell states, effective May 2018, Shell will began marketing its share of the gas produced from wells located in various parishes in Louisiana and all of our wells are included. As a result, Shell will be paying royalties to us for their share of the production. We've never signed a lease with Shell, so we are not sure if we are suppose to sign these division orders. The letter also states that EXCO will continue to market its share of the gas and pay accordingly. My question is, has anyone else received a division letter from Shell, when you were normally paid by EXCO? Should we sign the division letter and return it? Thank you for your response, Cindy R
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Replies to This Discussion
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Permalink Reply by Skip Peel - Mineral Consultant on -
What if the original EXCO statement and the decimal interest is incorrect? I've been reviewing unit surveys by a number of Haynesville operators and there appear to be some questionable practices involved. The fact that so many Haynesville unit surveys are missing from the public record makes it difficult to check the math on thousands if not tens of thousand of unit interests. Since LA requires that a survey plat and ownership list with acreage totals be submitted to the Office of Conservation within 90 days of first production and approximately 850 Haynesville unit surveys are delinquent by years, it should arouse the suspicion of all mineral lessors and unleased mineral owners.
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Permalink Reply by Cindy R on
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We have never received two checks. We’ve only received a check from EXCO. We received a check from EXCO in June 2018, but lately our check is about half the amount of our previous checks.
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Permalink Reply by Skip Peel - Mineral Consultant on
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Cindy, at a guess I suspect that EXCO was handling payment of royalty for BG and then Shell and other Working Interest owners in their operated units. Shell is more than capable of paying their share of royalties and have obviously decided to do so to protect their ownership interest. Some Working Interests may be able to pay royalty and some may not or prefer not to. It is very hard to determine what lessees own lease-wise in a given unit as that data is not in the public record as far as I know. Your reply would appear to indicate that EXCO continues to pay royalty for the Working Interests in their units.
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Update: We received a check from EXCO and Shell for July 2018. Just received the EXCO check today. The combination of the two checks is equal to the amount we normally receive from EXCO.
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Permalink Reply by Skip Peel - Mineral Consultant on
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Good to hear. Thanks for the update.
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Permalink Reply by M B Gilster on
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Sim. situation here, SWEPI is now paying on 12 of my 14 Exco operated properties, both pymnts. received for July & now to verify the dec. interest #'s.
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