Contango Royalty Payments Late

From County records I see you are in T18N-R4E, I looked up production and the last sales on everything WS had in 34 and 35 sold 1-2 loads of oil in 2018. Only thing I could add is these wells are classified as “oil” wells, so the lease you signed with WS has expired on it’s own terms. Sorry couldn’t be more help!

Yes, 2018 they made payments when they sold the left over product in the storage tanks. I think you are right that the lease has expired. I wonder if we could enter a lease with a different company and they could use the existing wells and bring them back up to operation?

Did WhiteStar pay you the shut in payments for your wells? Read your lease to see what the shut in clause says as to payments and time frame. If they did not, and Contango did not, then your lease may have expired by its own terms. Have you checked your wells on the OTC tax site? One of the Stufflebeam horizontal wells was still online as of March 2020. The well did not look “dead” at that time.

No we were not paid shut in payments by either one of them. Our Stufflebeam 35-3 WH has not been producing. Our surface holes are not on our property, they are across the road from us and have other surface holes on same location. They kept some wells producing but the 4 of ours were shut in.

Ask Contango for a release of lease. Will be interesting to see what their answer is. If they stall, then they may be trying to market the properties to another operator who may do a better job and get the wells back online.

i will do that and report back

We have interests in Payne County and Contango is the operator. The last payment we received was July 2020. Does the OCC or any other regulatory authority offer all of us in this boat any contact person or resource for dealing with Contango? Every post on this forum about this problem seems to indicate a lack of follow through by the operator.

What are our possibilities for recourse, other than hiring an attorney? Our interest only pays about two hundred dollars a month so attorney fees would swallow that and more very quickly.

Paul- If it were me, I would start with sending a certified letter, return receipt, to Contango, attention their revenue &/or division order department and let them know you haven’t received payment. Also, make sure they have your correct contact information, address, etc.

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