Range Resources has now surpassed Chesapeake Energy in complaints I have received. That's a pretty sorry state of affairs considering that Chesapeake has been the operator most aggressive in deducting post production royalty and ignoring lessors' requests for a number of years.
Range has delayed reporting production to the state and paying royalties to mineral lessors under some of their wells on too many occasions over the last year. Their Jackson Parish well that was completed in early December 2016 only recently reported production to the state and, as far as I know, still has not paid royalty. Hopefully royalty checks will be received in March.
For those who are leased and Range is the operator of your unit, I suggest the following. If you have not received payment 180 days after first production date, send a demand for payment by certified letter. The date the letter is received begins a thirty day response period. The letter might get you paid, or not, however it does establish your right to demand interest on delinquent royalty payments once Range does begin to pay. If Range has no compelling reason for refusing to pay after 180 days, you can seek legal counsel for an explanation of your options. Hopefully you do not have to sue but you have maintained your right to do so by sending the demand letter.
For those who are not leased but are approached with an offer in the future, take heed. Most standard form O&G leases do not contain a clause for timely payment of royalty. I would not sign a lease with a company that I suspected or knew represented Range without a clause stipulating the maximum length of time to first payment. I'd like 120 days but would settle for 180 days because Louisiana courts seem to think that 180 is reasonable.
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AboutAs exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More |
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