I have working interest in multiple wells in Eddy County NM. We did not know we had these inherited working interests until after they were drilled, therefore we are having to pay a 300% penalty before they will go into payout status. How can we reconcile the wells to see if we are passed the penalty stage on our own, without the assistance of an attorney? We are getting paid on some of the units in the same sections but not all. The other wells in the same sections (part of the same unit) are producing less than the wells, that are NOT in payout status. I feel that the operator is withholding the revenue due at this time.
As a working interest owner, ask the Operator for a copy of the contract that is holding you as a WI partner. You can ask for a copy of the Joint Interest Billing documents. Whether or not they will share them depends upon the wording of the contract and if it has audit language.
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They did share the documents with me, but I am unsure of how to interpret them as they are not as cut and dry as the JIBS and revenue statements.
Ask for the drilling title opinion which will breakdown the royalty owners and working interest owners in each well. Those interest will total 100%.
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Does the ORRI affect the actual WI that is paid out on the JIBS (from what is listed on title opinions)? I do understand the ORRIs affects the overall amounts of production being paid WI on correct?
Is an oil and gas company required to furnish a drilling title opinion if I request one? I have asked recently and they stated they are not required to furnish one to me and will not give me one.
They may give you a redacted portion of the opinion that shows your interest. They are not required to share the whole opinion, they pay 10’s of thousands of dollars to have opinions rendered. Once your interest is deemed non-consent, it may be really difficult to get it out of that status as the companies go through a thorough process of notifications and pooling. Trying to get in contact with a good division order analyst at the operator, might be your best bet.
Thank you for your help.