Replies to This Discussion

Permalink Reply by Gerald Mitchell Moody on June 17, 2016 at 2:21

I have read the lawsuit many times.  Copied below is the statement involving MRD and Hunter Temple:

The Defendant MRD Operating, LLC and the Defendant Hunter Temple herein, likewise engaged in a conspiracy to threaten and coerce  Plaintiff  herein  upon information and belief, may have threatened or attempted to coerce other members of the class into backing off demands for payment for royalties which the class representative hereinabove  is legally and  clearly entitled to receive.

After speaking to several people I know in Lincoln Parish, they all agree no one should be "dragged" through something they were not a part of and ruin their reputation.

All this is hearsay, but comments are "Where there is smoke, there is fire."  

I would hope Mr. Bowman or a law firm filing a suit like this would have evidence to back up their claim. And if they don't, they shouldn't be allowed to file such a claim and be held accountable for filing false accusations. If Hunter Resources is guilty of said claim, they should also be held accountable.  I am sure this will all be disclosed in depositions.

Hunter Resources is a newly formed LLC (October 21, 2015) in Shreveport, LA.  Russell A. Woodard is the registered agent, 1811 Tower Drive, Monroe, LA.

 

Permalink Reply by Chris on June 17, 2016 at 5:16

Like I said before as well, Hunter Resources has been nothing but professional. I certainly hope there is no merit in the accusations against them because that has not been my experience. Despite the claims of MRD's "good reputation," I think that they just piggy backed on the good reputation that Wildhorse built.  MRD has been claiming a backlog for far too long regarding royalty payments, sending out division orders and just standard operating procedures for any oil and gas company.  It was a believable story for a while but enough is enough. There is little to no accountability and MRD can tell the market whatever it wants as far as production volumes, in order to sell stock and eventually make an exit. I think NGP realized the dysfunction at MRD, enter Jay Graham and accelerated the exit strategy. The contracts with Penn-Tex are in place and NGP will profit from that for years to come.  

Permalink Reply by Skip Peel - Mineral Consultant on June 17, 2016 at 2:28

Louisiana courts have a history of denying class status in this type of suit.

Permalink Reply by Gerald Mitchell Moody on June 17, 2016 at 6:34

Chris, your reply sounds reasonable.  There were questions in most people's minds why the former CEO of Wildhorse would be named at the new CEO of Memorial (Jay Graham).  NGP is the financial backer for both.  Wildhorse (the original Wildhorse group) were fine people. Memorial comes in and takes over and landowners become unhappy.

Permalink Reply by Chris on June 17, 2016 at 7:13

Jay Graham is obviously a smart guy and the NGP guys are brilliant. The Terryville concept that Wildhorse/NGP developed is because of Jay Graham and Anthony Bahr and the other principals at Wildhorse. Private equity companies like NGP make their money when they sell out. MRD was only the conduit to get to the Range Resources exit to maximize profit for the stakeholders. I think NGP got to that point much earlier than anticipated. MRD was handed the playbook from WHR but failed to adjust for the depressed commodity environment. They continued full steam ahead and that wasn't sustainable. MRD was initially overwhelmed with the transfer and they never seemed to get a handle on the issues. NGP brought Jay Graham in  to get MRD back on course and ease the market's anxiety. Immediately after, they cut the drilling program in half, are building up the DUC inventory and I have heard they cut some staff. 

NGP is the money behind: Wildhorse, MRD, Penn-Tex Midstream and Springbok Energy Partners, a royalty buying company active in Lincoln Parish. 

Permalink Reply by Gerald Mitchell Moody on June 17, 2016 at 7:24

Thanks, Chris, for sharing your insight.  some landowners were contacted by Springbok to buy their minerals.  I believe it was Springbok.

Permalink Reply by Gerald Mitchell Moody on June 17, 2016 at 8:56

State records have been updated on a lot of wells as of June 15th.  I guess the lawsuit encouraged someone to get busy and update.  Hopefully landowners will receive royalty checks soon.  

Permalink Reply by Skip Peel - Mineral Consultant on June 17, 2016 at 9:46

I've never found the specifics of reporting requirements for the DNR/OOC.  IMO part of the reason that MRD has gotten so far behind with reporting is lack of sufficient OOC staff to hold their feet to the fire.  Over the last 8 or so years the number of state employees is down over 18,000 positions.  And a number of those positions are important and not unneeded excess as some conservative legislators would have you think.  Think the DMV and the Department of Revenue.  DNR/OOC has also lost a good many positions.  I knew and interacted with some of those staffers who lost their jobs through the many cut backs and can attest that there has been a negative impact.

I offer for review well S/N 247827.  The application for abatement of severance tax for this completed well is dated Nov. 14, 2014.  In the SONRIS well file it was reported Potentialed on Feb. 10 , 2015 and Shut In on April 22, 2016.  To this day there is no completion or allowable report entered in the database.

http://ucmwww.dnr.state.la.us/ucmsearch/UCMRedir.aspx?url=http%3a%2...

Permalink Reply by Gerald Mitchell Moody on June 17, 2016 at 10:05

I hope they get all their records in order soon.  Before any more damage happens.  Thanks for the information.

Permalink Reply by Skip Peel - Mineral Consultant on June 17, 2016 at 10:05

I failed to mention that no production has ever been entered in the database for S/N 247827.

Permalink Reply by Gerald Mitchell Moody on June 17, 2016 at 10:14

That is hard to understand after that long of time period.  If they are not capable and obviously all this Wildhorse acquistion as Chris said in earlier post is overwhelming to MRD people.  They should have asked for assistance.  The Terryville field is not for rookies.

Permalink Reply by Chris on June 17, 2016 at 10:23

Strange. So what happened to this well for almost 2 years? The LUW code for LCV RA SUL shows 4 wells from 8/1/14 -5/1/15.  It looks like SN247827 is the only SUL well drilled from section 24 and there are 3 wells in section 13. It would appear that SN 247827 production was included with the LUW code but no production is reported. 

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