My monthly production numbers for my Oil and Gas are always lower than the Texas Rail Road Commission Website. Is this cause for alarm? What do you recommend I do to make sure I am getting paid appropriately?
Thank you for your help.
You need to provide more information identifying the well and the volumes on a check to receive a specific answer. First, be sure you are comparing oil bbl sold/disposed for the production month, not production volume. Second, is the gas being reported on check as both gas sales and liquid product sales? In that case, the gas may be the remaining volume at the tailgate of the plant. Third, are you being paid on the unit basis or on the tract basis? If the tract basis, then the volumes are reduced proportionately by the acres in the tract vs the unit acres.
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Thank you very much for your help. Is there a way to look up production by well or API number so I can look into all of this stuff you mentioned above? I have only been able to look at it by lease.
Volumes are reported to RRC on a lease basis. Gas lease has 6 digits and oil lease has 5 digits. Gas lease is always a single well. Oil lease may have one or more wells and the list may change over time as more wells are drilled or cease producing. All gas, whether from a gas well or an oil lease, is reported by the volume at the wellhead. There is not separate reporting of the liquids and dry gas volumes. Most frequently, liquids is measured and listed on check by gallon.
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You can also double check oil production and gas production reported to the RRC with the State Comptroller website. For oil wells here: https://mycpa.cpa.state.tx.us/cong/reportLeaseDropCOForward.do and for gas wells here: https://mycpa.cpa.state.tx.us/cong/reportLeaseDropNGForward.do . If the lease number does not have six digits then add a zero (0) in front of the lease number.