Contango, now a wholly owned subsidiary of Crescent Energy Company operates several hundred wells in Payne County OK. Collecting royalties and interest due from Contango was extremely difficult, but, I’ve found it an impossibility to collect now that Contango is owned by Crescent. I have 40 years land experience, make almost weekly inquiries to the landman and DO supervisor, but with no success. I’ve had to file liens for the $60,000.00 owed to us on wells producing for almost a decade! Meanwhile, Contango/Crescent is flush with cash generated from stock sales and proceeds of mortgage to Wells Fargo for $4 Billion, but apparently, siphoning off millions owed to Oklahoma royalty owners, who, in large part are unaware due to this company’s failure to escheat to the state. Other than the liens I’ve already filed, and protesting any cause they may filed before OCC, what can be done? Should a complaint be filed with office of the Oklahoma Attorney General? A class-action lawsuit? Sunoco suffered huge punitive damages for failure to pay statutory interest, insignificant compared to this company’s actions. Any advice is appreciated.
Have you sent certified letters return receipt? You may need them for evidence. Sounds like a class action lawsuit…
I have lots of email communications with Contango/Crescent, but, did not think to send certified letters! I know this is important, especially with the possibility of litigation, but, totally forgot! Thank you so much for responding! Your advice is always spot on!
Where are your minerals located? I’m in 19N-1W
Hi Martha!
I am in 19N-2E, 18N-1E and 18N-2E…
The Oklahoma Corporation Commission does have an oil and gas complaints department. You might want to start by using this form in link below, made a copy of this form and any correspondence you have with the OCC and mail copies certified mail with return receipt of all to Cresent/Contango at all their addresses. One address is Contango Resources,5221 N O’Conner Blvd., Ste 1100, Irving, TX 75039. Cresent Energy has an office in Houston. [Crude Oil & Natural Gas (oklahoma.gov)] Crude Oil & Natural Gas)
This is great info! Thanks for your help!
Make sure that you have sent your W-9 by certified mail. You do not have to sign a Division Order in OK in order to be paid (unlike Texas), but they do need the W-9 and the correct address.
Maybe a dumb question (?), but have you not received ANYTHING from Contango/Crescent? Only reason I ask, I am in Section 29-18N-1W in Payne and have been receiving interest checks, but gees, receiving checks in May, 2023 for November, 2022 and has been continuous since Crescent took over, but of course, the revenue statement still says Contango off of 63rd in OKC.
I’m in 23-18n-4e and have received checks from time to time, not monthly, because they don’t have to send them ntil tge amount reaches $100 and we have only 15 acres in wells that are only producing enough gas, etc. to keep the leases going.
Hi Andy, I do get regular checks from Contango, and yes, their accounting has been in a twist. I bought additional royalty in 2 separate sections, clean title, nobody paid from first production. I sent the mineral deeds to Contango and Crescent, they do not want to process for 4 months. I told them that was 4 X industry norms, unacceptable and requested they pay royalties owed from 2014 forward and the statutory 12%. Last week they only want pay what is owed from November 2022 to present in July! Clearly they had no plan to pay up so I filed liens. I have other royalties that I can’t get them to pay from a couple years prior yo Nov 2022. Its obvious Nov 2022 is some kind of cut off date. This is the first time I’ve had to file liens to get paid in quite some time. It’s different. Lisa
Sam, You can request a change to $25 if you send in writing and by certified mail. Most companies will honor the request.
Thank you. I know, but have never seen any reason to do that. Little checks/bigger checks. All the same chump change. 
Thank you for answering the question I posed. I hope this gets resolved for you - so keep us updated, would be most appreciative to see how they resolve this.
I sure will! And thanks for all the help everybody! Lisa
Thanks to everybody! After a week, it does not appear Contango/Crescent Energy has funds to pay anything but current production. I’ve filed liens, so this insures the lien amount will be held by the purchaser of the crude oil (Phillips66) and I can eventually recover. I want everybody in this group/forum to know the process so you can do this if the need arises. Laws were passed in OK in 2010 to give some protection to royalty owners. From checking Mineral Owners Escrow Account, where revenue for dead or address unknow royalty owners is to be deposited, and recoverable from OK unclaimed property. But, only a small percentage of CCE wells appear, and then only a few owners, so there are hundreds of royalty owners in CCE wells that will never be able to discover they should have been paid, or, recover these funds if they do. I’ve worked in energy all my life (landman), 40 years representing oil companies, last few years on the royalty side. Oklahoma royalty owners have suffered a lot of abuse from many energy companies, but, CCE and their predecessors are far and above the worst I’ve seen. So, you all need to know how to protect yourself from not only CCE, but any company that will not pay your royalty. Oklahoma passed the Oklahoma Oil and Gas Owners’ Lien Act of 2010 in the wake of the SemCrude debacle. Easy to google and read. This gives royalty owners the right to file a lien, also, as a penalty for non-payment, royalty owners are entitled to 12% compounded annually, for all revenue in arrears more than 6 months and, interest is due along with the back revenue. (Google Cline vs Sunoco) If there are title issues with your royalty, of course that will have to be cleared up, and the operator is not required to pay 12%, but a lesser amount. Prepare your lien, and before signing and recording, it is important you send to division orders and landman if you know who that is… In CCE’s case, my liens went to Sheppard Nash, Sr DO Analyst at Crescent Energy and Jason B. Thomas, VP Land Contango. In my email, I ask that CCE review the attached prepared liens, and if they see any part of my lien is incorrect, to let me know so it can be corrected before I file of record. I would send this in the middle of the month, because I want it to the crude purchaser by the end of the month so they will withhold the amount of the lien from the next month’s revenue check. This gave CCE an opportunity to pay me before I filed liens, and in the past, this was always enough; everything points to the very real possibility CCE has already raided suspense funds and simply no longer has cash on hand to pay anything outside of revenue from current production. (In my first demand, they wanted 4 months to process, a huge red flag.) Make changes if necessary, file your lien, scan the recorded copy, send to the purchaser. Once you collect, you must sign a Release of Lien. You most likely will be trading an executed Release of Lien for a Cashiers check. But, the operator of the well usually dictates how this goes. I’ve attached both the Lien and the Release of Lien as a go by. Notice I added Wells Fargo to the CCE liens. The amount CCE owes to WF is staggering, and companies in financial trouble often have to agree for revenue to go directly to their creditors. Not even sure this was necessary, but, can’t hurt. Maybe this will come in handy sometime. Thanks everybody, I’ll keep you updated on the CCE saga. Lisa Bo-Li Sec 2-18N-2E NOTICE OF OIL AND GAS OWNER LIEN Payne.pdf (64.3 KB) Release of Lien Bo-Li.pdf (62.2 KB)
lle, thank you so much for the information. I appreciate your taking the time to fill us in.
Thank you for the information! OCC needs to know about Cresent/Contango not paying if they don’t already know.
Are they paying gross production tax? Check the OK Tax Commission.
I’m not sure they do. I have a good friend, now retired, OCC Administrative Law Judge, I will reach out to him and see if he can advise.