landowner

Adamas Royalties?

Are the Adamas Royalty Checks and Deposits running late for May?

I have active Wells in three Counties, however haven't seen any Royalty Payments for this month

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant 18 hours ago

Adamas acquired a lot of producing wells/units in multiple states when they bought Aethon.  The largest department for O&G operators is accounting.  In past sales of this size there have been delays in paying royalty.  Royalty payments usually pick back up in a few months.  I  would expect that they would resume by June or July.  Just be patient.


landownerPermalink Reply by Mike Wilson 2 hours ago

We got our Adamas direct deposit check on time or even a day or two early at the end of May.


Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant 1 hour ago

Thanks, Mike.  Did that deposit include a new well or wells?  I think we are specifically discussing payment on new wells but Bill can correct me if I am mistaken.  New wells often take a few months to appear on statements.  Older wells should appear each month unless they have been shut in.

Some years ago we went through a period of several months where there were corrections to the payment decimals on HC wells reported by members.  That was when the state first allowed those long lateral, multi unit wells to be drilled.  The problem appeared to be faulty division orders and payment decimals.  Drilling longer wells under those problem division orders and royalty payment decimals were, I think, an issue with accounting and legal.  A number of HA operators made changes to ensure that payments on those HC wells were correct growing forward.  I do not recall if Aethon was one of those HA operators I refer to.


landownerPermalink Reply by Mike Wilson 1 hour ago

No, it is an existing well. 


Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant 56 minutes ago

Thanks.  I thought that might be the case.

Permalink Reply by Jesse Joyner 21 minutes ago

Bill R -- my Adamas royalty ACH was paid on time for May in regards to my family's holdings in Louisiana (i.e., for south Bossier Parish). Maybe there was only a payment delay for the Adamas mineral owners in Texas. As Skip has explained, in the past the various operators over the years, which have acquired ownership of our south Bossier Parish wells (somewhat like real estate flippers pumping in money before closing a sale) -- sometimes will have short delays on their monthly payouts. I'm guessing this flub will be corrected soon. It never hurts to call the home office and complain.     


landownerPermalink Reply by Les 12 minutes ago

I received my south Bossier Adamas royalty check on time but it was HALF the amount of my April check. 


Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant 2 minutes ago

Les, did the gross price of natural gas change from April to May?  How about the deductions?  I would like all our members to learn to read a royalty statement.  Mistakes get made and if you don't catch it, it will go unresolved.  The very first thing that all members should do is find the unit survey for their section and calculate the correct eight digit decimal that they are paid on.  For long lateral wells producing from more than one section, you need to go to SONRIS and see what percentage of the perforated lateral lies in your unit.  Then use that to adjust your unit decimal to compare to the well decimal.

The math:  your tract acreage divided by the unit acreage times your royalty fraction.  Discrepancies in the last three digits of the payment decimal are not significant and usually due to rounding.

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