Speaking with landowners in Guernsey county Ohio.. I am hearing that EOG is stating that Encino overpaid on leases and EOG is recouping funds.. in Huge amounts…
Anyone else hear this?
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This sort of thing is not uncommon. When a new owner comes in, they review the division order title opinion or run a new one, compare leases and then clear up any discrepancies.
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your information has nothing to do with the TOPIC.. there is no new division order, no new title opinion. no discrepensy .. this is total theft.. NO new company should be able to step in and State that there is an overpayment without proving said situation.. And it is going on with many, as im finding out..
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Your post does not describe the details of how the recoupments are being presented to the mineral owners. Ms. Barnes responded appropriately to what you posted. There are many situations where the operator or successor operator will recoup funds. One involves a DOI adjustment, for example because the mineral owner owns few mineral acres or the minerals are subject to a previously unknown NPRI. Another involves PPA (prior period adjustments) for reasons such as correction of overstated volumes or overstated prices or because the oil company did not deduct costs which are allowed under the terms of the lease(s). In many states, there is no statute of limitations for these adjustments. Since EOG purchased Encino, EOG steps into Encino’s shoes regarding past royalty payments. You should post exactly how what is going on with the checks or correspondence.
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@TyOil It sounds like you’re discussing an important aspect of lease agreements in the oil and gas industry. The potential misinterpretation of lease bonuses can lead to significant financial implications. As you noted, Encino overpaid on leases, and EOG is recouping funds. Oil and gas operators often have the ability to recoup funds from landowners when a General Warranty clause is included in the lease. This clause can create a responsibility for the landowner regarding the ownership title, which can be a critical factor for operators when assessing the viability of drilling sites.
It’s crucial for landowners to understand that oil and gas operators typically don’t insure or certify titles; they merely provide a title option. This makes it essential to have a thorough review of any lease agreements by an experienced oil and gas attorney beforehand. The General Warranty clause, in particular, is often overlooked but is very important to address. Many landowners might not realize they can negotiate this element, which could protect them from potential liabilities down the line. Making informed decisions with professional guidance can significantly impact the outcome of these agreements.
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When this sort of thing happens, the mineral owner should contact the new company’s royalty owner department and ask for an accounting of the overpayment and why they are doing it and request an estimate of how long it will take until it is recouped.
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there is no adjustments other than. they believe they over paid.. am having the state look into now.. thanks
no response for over 6 months from either company.. many calls and emails. crickets
Have you sent a certified mail return receipt letter requesting and explanation and an estimated timeline for the remainder of the funds?