My elderly mom received the first royalty check in June 2016 for production from September 2015 through April 2016 for her small interest in the above referenced lease. The amount was far less than I expected so I checked the volumes reported to the RRC and the Texas Comptroller websites. The production reported on these public sites matched one another exactly and were far greater than the production detailed on the BHP check stub.
BHP included royalties on only 9,339.50 BBLS of the 106,562 BBLS that were shown on the RRC report as oil/condensate disposition code 1 (Truck) for this six month period. Likewise BHP included royalties on only 36,312.04 MCF of the 42,723 MCF reported as "gas delivered to a processing plant" during this same period. This gas volume excluded the 9,520 MCF that was deducted for gas lease or field use and the 190,388 MCF that was flared.
The July 2016 royalty check just arrived for oil/condensate production in May 2016 and this time the production of 8,566 BBLS matched the RRC and Texas Comptroller volume exactly. The gas production was entirely deducted as gas lease or field use (4,774 MCF) and flared (25,305 MCF).
My questions follow:
(1) Does anyone have an explanation for the apparent discrepancies in the initial RRC royalty payment?
(2) Could the initial lease signing bonus check have been an advance against future royalties?
(3) Are the "gas lease or field use" and "flared" volumes noted above typical amounts for these type deductions?
(4) Has anyone else had similar experiences with BHP at this well or elsewhere?
Any input would be much appreciated as I am learning on the fly and I'm trying very hard to represent my mom's interest in a responsible manner. Thanks!