What happens when a Well reaches payout status but you are not notified until over a year later? Does the 180 rule apply? What are the penalties against the O & G Company?
My BPX Energy royalty payment detail for a Haynesville well in Natchitoches parish has recently started showing a deduction for "TX08 Unclassified Tax". I understand the exemption for deep/horizontal wells ends after two years or payout, whichever occurs first. I assume this deduction is for my share of LA severance tax. But the Owner Remittance Advice includes a code "TX05 Severance Tax". So I have two questions:
1) If this is deduction is for severance tax, why would BPX code it as TX08 Unclassified rather than TX05 Severance Tax
2) How can I determine if this particular well has, in fact, reached payout?
Without detail on the specific well, it's difficult to offer an informed opinion. Have you reviewed your EnergyLink account information? I'm not aware of any BPX operated well in Natchitoches Parish. Is your well operated by a company other than BPX but BPX pays your royalty?