Pencil Whipping
These JIB charges always make me shake my head at the things that well operators charge to Working Interests. Makes you wonder what they do to mineral lessors with post production deductions. There are always items that are obviously related to operating a well but then there are seemingly unrelated charges like internet, office cleaning, long distance phone, answering service, port o let, pest control, drug testing and what are all those employees buying at Boot Barn!!!
This a Joint Interest Billing (JIB) statement from a Working Interest client. They have a very small interest and these are charges for one well. Typically what I see from all operators.
Views: 91
Replies to This Discussion
-
Permalink Reply by Steve P -
I should get whoever keeps these books to keep mine for my income tax returns. They would clearly pay for their costs by reducing my taxes.
Too many good ones to mention, but I do like the charge for ‘teflon tape”.
-
Permalink Reply by Skip Peel - Mineral Consultant
-
Yes, humorous unless you are the one getting whipped! I think that teflon tape may be for threaded fittings. A few insights. Does each well have an office that needs cleaning? I don't think so. Likewise what pests are being treated for an individual well? And who is making long distance calls from that well site? And an answering service???? There is always a "field office" that is the local HQ for all the wells in the "field" but no "well office". Begs the question, are the office expenses spread across all the wells in the field? Enquiring minds would like to know.
-
Permalink Reply by Quattro
-
I have family that inherited a mineral interest in a section with 1 well. Never leased. Therefore once inherited we went through the process to request the statements to see if ever reached payout which we knew it had not. Geez…it was undecipherable and it had every expense imaginable baked in there. I am sure once they had to start providing to us quarterly that cost was baked in there too (at 100x what it cost).
-
Permalink Reply by Skip Peel - Mineral Consultant
-
In the past operators would send those indecipherable bills with code numbers instead of descriptions. Finally a court ruled that was not legal. So operators started having to actually describe the type of expense and who was the material or service provider. Now we can see if not always understand the types of costs passed on to mineral lessors, unleased mineral owners and working interest owners. I guess it is a little better than being whipped with a code number. LOL!
Support GoHaynesvilleShale.com
Top Content
Blog Posts
The Lithium Connection to Shale Drilling
Shale drilling and lithium extraction are seemingly distinct activities, but there is a growing connection between the two as the world moves towards cleaner energy solutions. While shale drilling primarily targets…
ContinuePosted by Keith Mauck (Site Publisher) on November 20, 2024 at 12:40
Not a member? Get our email.
Groups
-
Natchitoches Parish
400 members
-
Franklin County, Texas
9 members
-
Cass County, TX
120 members
-
Rusk County
97 members
-
Livingston Parish, LA
34 members
-
San Augustine, TX
386 members
-
Miller County, Arkansas
27 members
-
Sabine Parish, LA
455 members
-
South Caddo Parish Group
440 members
-
Bienville Parish, LA
244 members
© 2025 Created by Keith Mauck (Site Publisher).
Powered by
