My Mom has interest in the well KC GU #1H in Shelby County. She started receiving payments from 2 different energy companies after we probated my father's will a couple of years ago. The beginning checks were in lump sums as the well had been completed before my father died but we were unaware of the process till after his death. Now in her monthly checks from one company they are going back and taking money away from her monthly interest check from anywhere of 1 to 2 years ago saying they overpaid the interest in that month. When we get the occasional check from the other company, they have done the same thing. Is this normal for these companies to revisit monthly payments and take away from the interest she has already gotten?? Is it worth me contacting the companies to see if I could get detailed information on this?? Thanks for any advice this discussion group can give me.
Mercy Me. This sounds so wrong of them to do that. We have never had that happen to us. Yes, I would contact the Revenue folks and ask questions! Revenue Inquiry ? You should have no trouble finding their address. I would say to you that this is not normal at all. Have never heard of a company doing it. The ones we deal with have never done that. ever. I wish you success in getting your answers. It is worth your time and effort to contact the companies and get detailed answers. You deserve answers.
I can give you horror stories about this same situation. Dad left mother with a comfortable income from his oil and gas holdings and some she inherited from her family. She was older and had bought a home in town and between her Exxon check and her social security checks made her house payments and lived comfortably. Then one day a registered letter arrived from Exxon saying they had overpaid her from several years earlier. There was no negotiating with with them whatsoever. She had 25 or 30 wells and her interests were as mineral owner only. No attorney wanted to go up against Exxon. The worst part she was developing Alzheimer's and did not tell my sister nor me that all of this was happening. Long story short, she had a heart attack, lost her home in foreclosure. Several years after she died my sister and I went through this with Samson claiming over payment and cut off all revenue to us until they got back what they claimed they were owed and refused to send revenue reports on all of our production.
We now put a clause in every lease stating that any accounting mistakes on their part can only be recovered from the income from those wells that they made the mistake in and not all production held by them.
Wanna Dee Box, that handles all of the oil and gas trusts for a large University told me she sends a registered letter to all payors to the trust once a year or every two years asking them if their payments to the trust were accurate. That way they could not go back over but a short time. Best of luck to you on settling this situation.
I will remember that "clause in every lease" that you put in. The next time that we negotiate a lease, which we have done successfully before, it seems worth our while to insert it in our lease. That truly is a horror story and I am so sorry. We have never experienced anything like you have shared.