Replies to This Discussion

Permalink Reply by w.r. frank on March 29, 2011 at 17:02

Skip,

 

I am confused by the "Report Date" on Sonris. It seems to me that the date is the first day of the month that is being reported. For example, I have a well that was completed on August 5. I got daily email reports during drilling and completion and the report indicated "delivered to sales" on August 5. Then, I got daily production reports from August 5th forward. The August total production from the daily reports and the August 1 "Report Date" Sonris production agreed. Since my well had Zero July production as it was not completed until August 5th, I concluded that the "Report Date" is prospective.

 

If you look on Sonris, wells are reported as completed on a certain date and there doesn't seem to be any production in the month before the 1st day "Report Date." Doesn't make sense that production would be reported on 1st day of the month before it occurred, but Sonris is not logical.

 

Don't get me wrong. Sonris is wonderful compared to other states, but it does have short comings. Not the least of which is only unit production and not both individual well and unit production. Once you get a second well, you have no idea of production decline on the individual wells.

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Permalink Reply by Skip Peel - Mineral Consultant on March 30, 2011 at 2:05

I seldom compare LUW Production on SONRIS Lite to actual royalty statements.  You may be right.  I find the DNR staff to be quite helpful and never hesitate to call when I have a question.  I suspect that any staffer in the Production Audit Section could answer this question. And I think we have reached the point in the play where a lot of members might like to have a definitive answer to this question.

 

Penny Landry  Miner Production Mgr.  225-342-5530

Becky Henry  Mineral Production Asst. Mgr.  225-342-5265

Stacie Massey  Min Pro Supervisor - Shreveport Dist.  225-342-5489

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Permalink Reply by Dion Warr, CPL on March 30, 2011 at 10:38

Skip:

 

I will agree with you on the first couple of month's reporting on wells on SONRIS - it usually takes a couple of months to shake out the 'adjustments' from the initial production date to regular "full month" reporting.

 

Also, as FYI to all on the thread, many operators will show transactions on the dates of sale(s), which requires adding all of the ascribed production for the unit together to balance out to the full month production reported online.  That can also create a new dimension of confusion to owners as intramonth transactions can be made at spot price (particularly with oil and condensate sales), which may vary from day to day.  In this case, the most effective way to compare the royalty or revenue values is to take a weighted average.

 

That all being said, in general, the sales reported on SONRIS is usually pretty close as wells go into a regular production cycle.  They should be - otherwise the production auditing and recapitulation will show irregularities between reported production, transporters, and/or marketers' records, and that triggers the state auditors to look over things carefully (as the state never wants to get stiffed on severance taxes).

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Permalink Reply by Les Bamburg on March 30, 2011 at 9:28

WR, don't be confused as a 12/1/10 report date is for the volume of production in month of December.

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Permalink Reply by w.r. frank on March 30, 2011 at 14:25

Hi Les, I don't think I am confused. That is what my post was trying to say. Only in LA. would you have a Report Date of August 1 for future production in August. Obviously, Report Date means nothing literally!

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Permalink Reply by mskillerbee on March 30, 2011 at 8:34

Skip,

Thank you for the help. I emailed them March 2oth, so I will take your guidance and in two weeks; if there is still no response, give them a call.  Do I still expect a division order letter in the mail and then a royalty check?  I do not mean to step on CBT's discussion...is there a better forum for questions like mine?

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Permalink Reply by Skip Peel - Mineral Consultant on March 30, 2011 at 8:42

On the Main Page in the Groups Section click on View All.  You may wish to post your question in the Already Leased group or one of the Leased To _______________ groups.  General questions might be best suited for the first and specific questions concerning Division Orders and Royalty Statements in the second for the specific operator of your well.  Yes, DO usually come first and then the mailbox money.

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Permalink Reply by mskillerbee on March 30, 2011 at 8:48

thanks!

 

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Permalink Reply by Les Bamburg on March 30, 2011 at 9:24

Skip, I would not assume there was a typo as the well may have only produced in October and December with no production in November.

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Permalink Reply by Les Bamburg on March 30, 2011 at 9:17

Mac, the well could have been on production since January.  "Potentialled" just means paper work approved by the State.  The 2/11/11 date is just when information is reported.

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