"Rebalancing Volumes"
I get royalties from Comstock every month from a variety of wells in different units. My interest is small.
My royalty check for May was about 20% of what it usually is. This follows another small check earlier this year due to payments of severance taxes to La. I sent an email to Owner Relations to ask why the check was so small when the well volumes posted on Sonris didn't reflect a huge drop in production. The response was the following:
“We have a partner working interest owner who is marketing their own gas. When revisions were processed in the well, gas was rebalanced and the gas volumes marked by Comstock changed, therefore the volumes changed for the owners in the well”.
A subsequent email told me that Comstock is paying all of the royalties, so I've gotten all that I'm owed.
Can anyone explain to me how "rebalancing" volumes cost me $1000?
Steve P
I've pushed back on Comstock, and they have referred me to accounting for more explanation.
My June check I received this week is back to normal.
Jun 4
Ryan Howrish
Unfortunately, it's not uncommon for allocation issues to arise when a non-operating working interest owner markets their own volumes. I am not sure how long the problem has been occurring. You should be able to tell based on the number of revisions on your royalty statement that was 20% of what it usually is. Most likely, someone at Comstock made an error in the allocation for a period of time. Once the error was discovered, the operator was obligated to correct it. The total gross gas volume from the well/unit is likely unchanged, and you can confirm this by reviewing the reported production in SONRIS. You can calculate your monthly volume and revenue using the unit size, acreage, royalty rate, and gross volume from the unit well to determine if there were any changes to your allocated volumes during the rebalanced months. I have worked through similar issues with several operators in the Haynesville.
Jun 4
JAMES SMITH
Same thing happen to me with SWN my April check went down $1000 and I didn’t even get one in May. They told me something about WI but all my acres are leased. I guess they are looking into it.
Jun 4