Arbitrary change of interest type by BCE-Mach to "Blanchard" interest

My property is KINGFISHER_S4-17N-05W. Mach is now the operator of wells obtained through the Alta Vista Bankruptcy originally based on a mineral lease signed by my grandmother in 1966. The lease has been held through production of an active well that is now incorporated in the North Lincoln Unit. Mach, evidently under the terms of the “Blanchard” interest can now deduct substantial $s from my revenue covering marketing, processing, line loss, fuel and transportation and even one referenced as “POP” for which I have no definition. I have not had any deductions like these from my original well and when I called Mach on this by sending them a copy of my original lease, their reply was in essence “send additional documents”. I provided them the document upon which everything is based – there are no additional docs available that I have been a party to. Mach has not provided me any docs stating the basis for their deductions saying only the the interest is now a “Blanchard” interest, whatever that is! Can anyone tell me what right anyone has to unilaterally change the terms of my 1966 lease?

After you posted, I looked at mine as well. There are also marketing cost that Alta Mesa did not charge. All there deductions are almost more than the check.

the deductions are only a few hundred $/yr but there is strong activity in the immediate area making me think that there may be a good future for my kingfisher property. My original lease is the “basic” document from which all others have flowed. MACH is totally ignoring my demands so that other than going to a lawyer I don’t know what other remedies are available. The deductions won’t equate to many lawyer hours. Nothing is deducted by Hinkle other than taxes from the Lincoln unit 76 which the holding production is a now a part.(production started in 1966) predating all of the Alta Mesa mess and MACH, I guess my only reasonable cost way going forward is to keep the letters directed to MACH.

Archie, I wrote to BCE Mach regarding the difference in deductions and this is the answer I got, “ Thank you for sending.

Just looking at your 2017 Alta Mesa detail and our detail (06/2021 check) attached , you are NOT being charged a marketing fee per the Owner Share column on the check detail. Oklahoma Severance Tax is around 7% of your net revenue.

POP is a deduction and it stands for Percentage of proceeds. It’s a volumetric reduction of the produced products. To calculate the deduction, we apply a price to these volumes and subtract this from the gross value, the gross value of the product before POP is applied. After this POP is converted to a value deduction and subtracted from this gross value, you will arrive at the product proceeds we actually received from the processor.”

Alta Mesa is history regarding this property. Mach is now the operator out of bankruptcy and is deducting many items, including a POP from the gas proceeds. Oil appears to be as provided for in the original 1966 lease. The arbitrary change to a “Blanchard” lease over 50 years after the original lease is my issue — why are they allowed to make such an after the fact change in lease terms? My original lease should be the controlling document!

Will we have to hire a lawyer to get an answer to the basic question regarding the change in lease terms after bankruptcy?

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