Petrohawk delays royalty checks to May 25th

Please note:  The below notice in red has been posted on PDS Energy's webpage, which is the go-to for Petrohawk's "Owner Relations Online System" that is used by HK & KCS (and which the Australian conglomerate BHP Billiton controls vis-a-vis being their parent company).

"Due to delays caused by the implementation of the Oracle software this month, Petrohawk does not expect to issue the monthly royalty checks until the latter part of the week of May 21st.  At this point, we anticipate the checks to be mailed no later than May 25th."

Tags: BHP, HK, KCS, Petrohawk, delay, in, payments, royalty

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Permalink Reply by DrWAVeSport Cd1 on May 16, 2012 at 5:33

GD,

Hope CHK gurus don't read this "Oracle software" snafu (excuse)...  LOL

 

Permalink Reply by kittycatmama on May 16, 2012 at 5:42

Well, Encana hasn't paid us on THEIR mistake for 8 months because of their software problems

Permalink Reply by GoshDarn on May 16, 2012 at 17:22

Doc, I hear ya.  But, y'know, maybe the "Oracle of Omaha" has some eyeballs smiffin' out the particulars since it certainly can cut both ways, cher.

(Sssshhh, doc.  A portfolio paper cut ain't too bad, but a thousand of 'em can get a bit painful on the money counting finger.)

Permalink Reply by GoshDarn on May 16, 2012 at 6:51

smith1:

Yeah, well -- that webpage didn't mention the direct deposits.  HK normally does our ACH on about the 17th of the month, so the 23rd would still be a slight stutter.

Permalink Reply by Ezra on May 16, 2012 at 10:16

We've been waiting for 12 months after HK analyst confirmed our 40 acre interest.....

Permalink Reply by smith1 on May 16, 2012 at 10:32

Hmmm,,,We've always been paid on time (or within 3-5 days)...I can't say enough of good things with the dealings we've had the Petrohawk.

Permalink Reply by getoverit on May 16, 2012 at 16:14

Join the club. It's been 14 months for us.  Can't seem to get anyone from Petrohawk or BHP to return phone calls.  Talk about poor owner relations.  We don't have the time to call them every day, but u just about have to. We have a 40 acre interest as well.

Permalink Reply by JHH on May 16, 2012 at 12:02

Speaking in general terms... i wonder how much royalty $$$ are paid out to mineral owners per month in the Haynesville by Petrohawk or Chesapeake... Shell or Chevron or XTO... or some other oil/gas producer.  And the "sinister side" wonders how much money can be made in the "markets" by occasional delayed payments because the product was sold... but not everyone is paid at the same time.  You know... time is money!

Permalink Reply by Bill Hill on May 16, 2012 at 16:42

You're right, time is money and you are entitled to interest payments on delayed royalty payments.  State statutes control the time frame and interest rate.  I just completed a claim where the operator had to go back 12 years and pay back interest for late royalty payments.  These operators know the statutes in the states they operate in and if they are making late payments, they are waiting on you to force the situation.

Permalink Reply by JHH on May 17, 2012 at 0:37

WOW!  You can go back 12-years?  I live in Texas... i think we can only claim 3-years... but i could be wrong about that.  thanks, jhh

Permalink Reply by Dennis on May 23, 2012 at 5:05

we just filed a claim for interest on late payment from XTO.   we always thought the statute meant prime rate + 2%; but actually its the discounted federal rate + 2% which is what XTO used of course.  makes a big difference too  in the calculation.  prime rate 3.25% + 2% = 5.25%  VS .75 + 2% = .0275%  

Does anybody know for sure which prime rate that they are supposed to use when calculating the interest for late royalty payments?

Permalink Reply by Bill Hill on May 23, 2012 at 7:00

The rate they're talking about In Texas is found in section 91.403 and 91.407(d), its the Federal Discount Rate which is currently .75%.  Then add 2% which brings you up to 2.75%.

The rate in Arkansas is 12% which is what XTO had to pay us.

 

 

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