More Fraud. Argenta Fee 18, API 05 007 06049, S11 32N6W Archuleta County Colorado

General Mineral Rights Discussion
1

The Argenta Fee 18, API 05 007 06049 Located in S 11 32N6W Archuleta County Colorado. This well is the better of the two wells operated by Big Run Production Company. Completed in 1989 . Its was tested and Flowed at a estimated rate of 400 to 600 mcf per day . The well would log off with water and the the test could not be completed. Those numbers are very good for a wet well, when start pumping the water off it takes the pressure off the gas so it will produce at higher rates. The well was shut in awaiting the pipe line to be installed

In Feb 2010 I noticed this well was still shut in ?. I called Big Run and asked why ? Big Run said you got to call Bp America they are the Operator of this well ?.. April 2010 Production starts ?.. The operator is Big Run. The Argenta Fee 18 well is now producing in 30 days what it tested for in one day ?.. I'm thinking no way !!, so I go to COGCC Document file and start reading these documents one more time but this time I make sure I understand just what each one means. This is not easy because it a mess incomplete document etc. What I find is the Sundry Notices stop in 1995 this notice has to be submitted every 6 months to explain why a well is shut in. I found the Certificate of Clearance or change of Operator form was there and dated 1994, it had a sticker over the Certificate of Clearance and that made it look like two change of operator forms were on file. You have to have this form to move the gas. I found three inspection reports, the first one was titled SI and noted that the flow line was disconnected and dated 1995 ?. the next two were a TA and a PR dated 2000 ?.. I also found a elect pump was installed in 1994 to lift the water off.

The Argenta Fee 19 API 05 007 06094 was drilled and completed in 1994 and started production that same year it shares the well pad with the Argenta Fee 18 so the pipe line was there in 1994.

I have a lot more to add to this too.

Has anyone experienced this kind thing ?.. I could sure use everyone input.

I sincerely think that theft is rampant in Colorado there nothing in place to prevent it.

2

Dear Mr. Tompkins,

If you are looking for input, 400-600 mcf per day is an absolute dog of a well, not pretty good numbers for a "wet well", (which I thought had to do with sewer systems or septic tanks).

As far as pumping water, that does not happen on a well that is classified as a gas well. Actually, there are three types of drive in a reservoir, a gas cap drive, a water drive and a combination (of the two) drive. I have not seen everything, but I would be surprised to see a pumping unit on a gas well. Perhaps a CPE can chime in here.

If the well was shut in, it could be shut in because there is not enough flowing tubing pressure to get in the line without a compressor, which may never pay out for itself, given low prices and low volume.

As to monthly production declining to a point where it did not make what it did on test, well, that is the life cycle of a wasting asset.

I see no fraud by what you put forth. Fraud will happen when the sales numbers do not match the production numbers reported to the state. If the numbers do not jive, then the preparer of the form has committed perjury and the company will be fined and perhaps criminal acts against the management.

Some people, by the way, have said "I wonder who Buddy is working for?" - implying it is an "us against them" mentality. It may be for some people, but my motivation is to provide contributions, through a varied knowledge of the oil industry, as a value added benefit to the many participants in this network who are forming opinions and seeking solutions and advice in an ever-changing and ever-more-informed society, involving landowner/company negotiations and operations.

I had to get this off my chest, because some people have been trying to think to hard.

3

Thank you Buddy for your Input Sincerely. I should of classified these wells as Coal bed methane wells my mistake. I do make a lot of them and I'll admit that I'm not the sharpest tool in the Box as you can see my accounts are a little fragmented.

Backing down from my statements I can't do that. If I'm making people think that's good and that's why I'm here.

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4

Mr Cotton

Big Run Production Company operates three wells in the state of Colorado . I've attached a check statement for the well I do not own and the reported production for all three wells for the same operating month as the check statement. Colorado state law say one well per statement.

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Dear Mr. Thompkins,

In not all cases does the operator make 100% of the disbursements under a well. Sometimes, there is split stream production and the gross value is the gross value that is owned by the disburser.

Also, as long as you are positive that you are computing the gas value based on heating content correctly and the oil value after adjustments correctly, you might be on to something.

6

Mr. Cotten

I called Bp America Royalty Relations and asked the woman I spoke with about all the I.D. numbers on the left side of the statements. She look those numbers up and said they are all for the well that's name is on the page. The Argenta Fee 17, API 05 067 06333.

I then emailed copies to Bp America Owner Relations at Oildex (IBM accounting) and asked are these real ?. Bp's responded with a YES but only for the Argenta Fee 17 and that is the only well with Big Run we gather the gas from.

I opened COGCC document file and checked out the Certificate of Clearance and found that El Paso Gas gather our gas from the the Argenta Fee 18 and the 19.

I also sent copies to NARO Colorado Chapter and Mr Neal Ray ( President of the Chapter ) was who responded and informed me that Colorado State Law says only one well per statement unless the wells are part of a Federal Exploratory Unit and these consist of hundreds of wells not just three wells . He also said I think you better find an Attorney !!.

I have family that's involved in this and they are just as guilty as the Operator Big Run Production Company.

This kind of thing is not going to happen to everybody it is very rare !!. I do have a plan on how to deal with this and I'll disclose that after the fact.

Thank You Mr. Cotten responding

William Tompkins

7

Let me provide some information as I have been employed in the San Juan Basin natural gas region for over 5 years now. There are two types of wells in the San Juan Basin, conventional and non-conventional. Conventional wells are shale wells. In this asset they typically don't produce water in the beginning but do produce water in their later years. In this asset they tend to produce some crude as well. Most of these wells are located in the New Mexico, or southern portion of this asset. The Colorado section of the San Juan Basin is mostly coal bed methane. Coal bed Methane is categorized as non-conventional. Coal bed methane in the San Juan Basin typically produces water initially and then the water production decreases and even tapers off as the well matures. I believe the gas production from non conventional wells over time follows a bell curve. I think the conventional shale wells start out strong and then taper off over time. The two Argenta wells in question are coal bed methane. One produces a fair amount of water and the other does not. the difference in contract prices on the two wells may well have to do with the one that produces a lot of water that has to be paid to dispose of and consequently, the water producing well contract gas price is lower because of the water that comes with it.

I do not know for fact if Red Cedar, El Paso or BP is the buyer of the gas from Big Run. I'll determine that tomorrow. However, I do know that BP, Red Cedar and El Paso have their own flow meters on those wells besides the flow meters that Big Run has on the wells. It is referred to as a "custody transfer" and since there is a custody transfer, the three buyers mentioned above check the calibration on their flow meters 4 times/year to make sure accuracy is certain. No one wants to be cheated on the selling OR the buying side. It is my understanding that these numbers are closely monitored on the government level and each entity as a seller and buyer report those numbers to the regulatory agency and if the numbers don't match up, there is a problem. The regulatory agency isn't so much concerned with the two parties involved not getting their fair share as much as they are concerned about methane leaks in the transfer piping between meters. There was a LOT of fraud back in the 90's, but I haven't hear much about that stuff in several years. Big Run has nothing to gain under reporting the numbers. They would be cheating themselves out of revenue.

I'm not sure why William Tompkins is losing sleep over this. His cut can't be more than $25-$50/mo with gas less than $2. I don't know what his cut is. Maybe it's even more than my dad's. Go figure. Maybe he's an only child. Just think the irony. The one who is ranching the property his whole life getting less royalties than someone who has nothing to do with the property.Anyway, natural gas is projected to drop more in the near future. It may increase next fall. It is projected to increase to $3-$4 over the next 3-5 years. Not something to retire on when you don't have a large stake in the royalties.

I know E. E. Lane, my great grandad owned this property back in the 30's and he traded it with my grandad in the 40's for some land in Roswell, New Mexico. I found a letter that my grandad wrote to his siblings a LONG time ago explaining the land exchange that he had with his father and that the land was traded and considered paid in full. When my great grandad passed away, my grandad's siblings made him pay them for this Colorado property on top of the land trade in New Mexico. So, he bought it twice! Then, when my great grandad traded properties he took the mineral rights from the Colorado property along with the New Mexico property and split the mineral rights 5 ways with my grandad and his siblings. This is how William Tompkins got some stake in the mineral rights. Anyway, grandad and his siblings split the mineral rights even more as they passed them on to their kids. My dad, who purchased the Colorado property from his siblings when my grandparents had both passed away was left with one fifteenth of the mineral shares. Farmers around us are all retiring and driving around in nice new pickups because their mineral rights didn't get all divided up into miniscule pieces. Dad is 70 and still working the ranch to pay bills and then we have these cases of distant relatives with a small piece of mineral rights to a property that was never theirs squacking and thinking that they are sitting on a gold mine. Those are the facts. There is NO fraud in this. I get the impression, living in the middle of all of this that I have a far clearer picture of it all than someone living half way across the US with nothing better to do than make false accusations concerning the integrity and good character of my family.

Sincerely,

James D. Lane

8

Mr. Lane, I was really thinking you were a thoughtful and clear thinking man. The very voice of reason. Then you made this crack below. If the interest belongs to Mr. Tomkins it belongs to him, whether he is under a misconception that someone is stealing from him or not. You yourself said there was fraud going on in the 90's. If Mr. Tomkins is wrong, it would be my opinion that the crow he will have on his plate will be punishment enough, not to mention legal fees he will incur before he finds he is wrong, if that's the case.

James D. Lane said:

If Mr. Tompkins wanted to do what was really right, he'd sign the mineral rights back over to my dad.

James



James D. Lane said:

Let me provide some information as I have been employed in the San Juan Basin natural gas region for over 5 years now. There are two types of wells in the San Juan Basin, conventional and non-conventional. Conventional wells are shale wells. In this asset they typically don't produce water in the beginning but do produce water in their later years. In this asset they tend to produce some crude as well. Most of these wells are located in the New Mexico, or southern portion of this asset. The Colorado section of the San Juan Basin is mostly coal bed methane. Coal bed Methane is categorized as non-conventional. Coal bed methane in the San Juan Basin typically produces water initially and then the water production decreases and even tapers off as the well matures. I believe the gas production from non conventional wells over time follows a bell curve. I think the conventional shale wells start out strong and then taper off over time. The two Argenta wells in question are coal bed methane. One produces a fair amount of water and the other does not. the difference in contract prices on the two wells may well have to do with the one that produces a lot of water that has to be paid to dispose of and consequently, the water producing well contract gas price is lower because of the water that comes with it.

I do not know for fact if Red Cedar, El Paso or BP is the buyer of the gas from Big Run. I'll determine that tomorrow. However, I do know that BP, Red Cedar and El Paso have their own flow meters on those wells besides the flow meters that Big Run has on the wells. It is referred to as a "custody transfer" and since there is a custody transfer, the three buyers mentioned above check the calibration on their flow meters 4 times/year to make sure accuracy is certain. No one wants to be cheated on the selling OR the buying side. It is my understanding that these numbers are closely monitored on the government level and each entity as a seller and buyer report those numbers to the regulatory agency and if the numbers don't match up, there is a problem. The regulatory agency isn't so much concerned with the two parties involved not getting their fair share as much as they are concerned about methane leaks in the transfer piping between meters. There was a LOT of fraud back in the 90's, but I haven't hear much about that stuff in several years. Big Run has nothing to gain under reporting the numbers. They would be cheating themselves out of revenue.

I'm not sure why William Tompkins is losing sleep over this. His cut can't be more than $25-$50/mo with gas less than $2. I don't know what his cut is. Maybe it's even more than my dad's. Go figure. Maybe he's an only child. Just think the irony. The one who is ranching the property his whole life getting less royalties than someone who has nothing to do with the property.Anyway, natural gas is projected to drop more in the near future. It may increase next fall. It is projected to increase to $3-$4 over the next 3-5 years. Not something to retire on when you don't have a large stake in the royalties.

I know E. E. Lane, my great grandad owned this property back in the 30's and he traded it with my grandad in the 40's for some land in Roswell, New Mexico. I found a letter that my grandad wrote to his siblings a LONG time ago explaining the land exchange that he had with his father and that the land was traded and considered paid in full. When my great grandad passed away, my grandad's siblings made him pay them for this Colorado property on top of the land trade in New Mexico. So, he bought it twice! Then, when my great grandad traded properties he took the mineral rights from the Colorado property along with the New Mexico property and split the mineral rights 5 ways with my grandad and his siblings. This is how William Tompkins got some stake in the mineral rights. Anyway, grandad and his siblings split the mineral rights even more as they passed them on to their kids. My dad, who purchased the Colorado property from his siblings when my grandparents had both passed away was left with one fifteenth of the mineral shares. Farmers around us are all retiring and driving around in nice new pickups because their mineral rights didn't get all divided up into miniscule pieces. Dad is 70 and still working the ranch to pay bills and then we have these cases of distant relatives with a small piece of mineral rights to a property that was never theirs squacking and thinking that they are sitting on a gold mine. Those are the facts. There is NO fraud in this. I get the impression, living in the middle of all of this that I have a far clearer picture of it all than someone living half way across the US with nothing better to do than make false accusations concerning the integrity and good character of my family.

Sincerely,

James D. Lane

9

True, true, Mr. Kennedy. I let my "Ire" get to me. I don't appreciate someone questioning the good character of my Dad. He has NOTHING to do with Mr. Tomkin's issues. You'll notice that I have since removed the added post. Mineral rights are what they are. I guess my stance has always been that the rights should stay with the property. I know that is not everyone's stance.

10

I did verify that both Argenta wells are feeding into a BP pipeline. So there is indeed a custody transfer from Big Run to BP. Both companies maintain chart recorders to keep track of continuous flow rates from both wells. I will be getting some data later today that I can review and have a better understanding of the history of these two wells. I did verify that the contractural $$ difference between the two wells has to do with the water content coming up with one of the two wells.

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Mr. Lane, I understand. It happens to me also and probably to most people. I probably shouldn't have said anything, but when I go off on a tangent I sure wish someone would warn me. I still believe the points you made regarding Mr. Tomkins concerns were reasonable. I know from my own personal experience that mineral owners make mistakes through lack of understanding and I am grateful for those who took the time to correct me and expand my understanding.

12

What do you think is not in place to prevent the theft of gas from natural gas wells? There are both State and Federal regulatory offices that keep a tight reign on this stuff. They want their piece of the pie too.

13

I got the last two years of recorded production. The Argenta 19 produces an average of 259mcf/day or an average of 7866mcf/month. The Argenta 18 produces an average of 18mcf/day or an average of 558mcf/month.

A big producing well makes over 1,000mcf/day. These two wells are NOT big producers when compared to what is considered big in Colorado. I'm not sure they are even big when compared to New Mexico which is an older field with dropping rates. So, with those flow rates and $2/mcf, the Argenta 19 yields around $205,000/year and the Argenta 18 yields around $14,000/year. Not sure what Big Run paid to drill these wells back in the late 80's. I must have been over $100,000 a the time. I think we spend over $1,000,000 today to drill a well. I know it can be multiple $100,000 to reclamate the well site after it is depleted. I suspect the operator that maintains these wells draws $20k-$40k/year. Maybe less. I think he is semi-retired. I think the operators around here are in the $75k-$100K+ salary range full time. I know if the plunger on the water jack pump has to be replaced due to wear, it is right around $100k for a rig to come in and replace the pump parts down hole. I don't know which expenses are taken out before the mineral rights. Maybe only the cost of disposing the water since it comes with the gas? I'll have to investigate that further. But the Argenta 18 was off for a few years for a reason. Not much of a producer with all the water that sits on top of it. I remember when they drilled that one. I was in college and I remember they brought in a swabbing workover rig SEVERAL times to try to help the gas pressure overcome all of the water sitting on top of it. There is a jack pump that sits on that site that hasn't run for the past two or three years because the low price of gas is cost prohibitive to run the jack pump to pull water off the top in hopes of increasing the gas flow off of that particular well.

That's all the info I have for today. Things are tight around here with low natural gas prices. I am glad I work for a company that sees long term value in the North American Gas business and not just the spot market. Right now the oil producing part of my employer is subsidizing all of us that work in the natural gas section of the company.

14

The operators name is Big Run Production Company and its owned by Eli Rebich ?.. I think maybe its Eds lie and we are real rich ?. I've called their office and its always Ms Joan Pickard that answers the phone so I wonder is their really a dude named Eli Rebich ?..

After ready what You have to say Mr. James D Lane the family ( I mean your branch of the family's ) is in fact Big Run Production Company .

I emailed Steve Labowskie (State of Colorado Oil and Gas Conservation Commission Inspector) and asked him again who took that fraudulent photo of the Argenta Fee 18 API 05 007 06049 and 30 minuets later you are posting a tirade here at Mineral Rights Forum ?.. I'm not surprised !!. Its My guess You took that photo Mr. James D Lane . I talked to your Daddy and He said You were the only one on the place that owned a Camera ?.

How about if I ask you a whole bunch off question ?. You do want to be transparent and convince Me nothings wrong with any of the wells in S11 32N6W right ?. If you answer my questions truthfully maybe you won't get in so much trouble in the end, maybe.)

What Company do you work for ?. Pacific Northwest Pipeline, El Paso Gas or Red Willow .

The Argenta Fee 19 API 05 007 06094 the reported produced water has been 430 gallons every month since May 2007 . How does work 430 gallons every month ?.

The Argenta Fee 18 API 05 007 06049 no reported produced water ever . This is the wet well the one with the worn out pump jack on it how come no produced waters ever been reported ?..

The Argenta Fee 17 API 05 067 06333 the reported produced water has been 43 gallons every month since May 2007 ?.. I'll answer this one !!. Its a Big Run Well .

Who are David Woodard's three stockholders in the Argenta Fee 17 ?.

Who owns Eye Heart Properties LLC. ?.

If your Daddy only owns 1/32 Royalty interest in the Argenta Fee 18 and 19 wells, His Monthly check must only be $5.00 why are you so worried about Me ?.

This is for Your info the checks from Big Run Production Company come pay to the order of Blanch Lane Tompkins. I don't receive one penny from these wells . Why am I losing sleep over it you ask ?. You are stealing from my Mom . I'm my Mothers care giver she's 88 years old .

When was the last time you were in San Bernardino California ?.

What was all the Fraud in the 1990's ?

Show some Documents to back things up when you answer please because anybody can type a bunch of words that don't mean a thing Cousin.

15

William, please take the time to proof read your postings before posting. Your sentences are sometimes difficult to follow. As for "cousin", that would be my Dad not me. As for the remark that you made about:

"I emailed Steve Labowskie (State of Colorado Oil and Gas Conservation Commission Inspector) and asked him again who took that fraudulent photo of the Argenta Fee 18 API 05 007 06049 and 30 minuets later you are posting a tirade here at Mineral Rights Forum ?.. I'm not surprised !!. Its My guess You took that photo Mr. James D Lane . I talked to your Daddy and He said You were the only one on the place that owned a Camera ?"


Not sure what you are even talking about. I have never taken a photo of the well site sign. I've never had a need to. I don't ever plan on taking a picture of it. I've NEVER posted a picture of any wellsite marker on this forum or anywhere else. I am quite certain that you had no conversation with Dad about who owns a camera here. I would guess we have about a dozen devices of varying technology that are capable of snapping a photograph. Three of which are actual cameras, 4 of which are cell phones with photo capabilities, a handful of tablets, again with photo capabilities. Living here in beautiful Colorado, there are far more interesting and scenic sites to snap photos of instead of a well pad ID placard. I'm pretty sure my Mom owns a still photo digital camera as well as a digital video camera that we just bought her for Christmas this last year. But, she has no interest in taking pictures of well site placards either.

As for credentials and an understanding of the oil/gas industry in the San Juan Basin: I have a BS in Electrical Engineering and Masters in Mining Engineering, both of those from a well recognized School of Engineering, Colorado School of Mines. As I mentioned before, I have been working in this industry for several years. I do not work for any of the companies that you mentioned.

Who do you work for?

As far as I can tell Argenta 18 and 19 are on our property. I don't know where Argenta 17 is located. The Argenta 18 is not producing water because the jack pump is not operational. The effect is such that if you don't pull the water off the top of the gas, you will produce considerably less gas, i.e. Argenta 19 produces over 14 times as much gas as Argenta 18. I don't know how much the Argenta 18 produces in water or gas when the jack pump is operational. It may be that even with increased gas production whilst running the pump jack, the cost of maintaining the pump is greater than the increased gas production. I know it costs about $100k for a workover rig to come in and replace/repair the pumping hardware located down the well bore. So, the gas production needs to be increased considerably to justify running the pump jack.


We don't hold any shares in Big Run or any of its associated entities. If we did, I'd openly share that information and I would be heavily involved in the future development plan to enable me to retire early. Dad isn't out in the crap winter weather from sun up till sun down and for that matter all year round sun up to sun down just to pretend that he has to. He's 70 and needs to slow down but he can't, he has to keep working to pay his bills.


You've cited lots of documents but I don't see what you have posted as proof. You talk a lot, make a LOT of accusations. That is what has me troubled. You are attacking the gas companies, your "cousins", your relatives, and you ask me why I am on here, why I am concerned? You are on a public web page making slanderous remarks about businesses and individual persons and in everything that you have posted, I see no substance because there is no substance to be had.


What does it matter the last time I was in San Bernardino, CA? Let's see, I remember taking my wife and kids swimming on the coast, Loma Linda or somewhere near there, that was....about....3 or 4 years ago, maybe. Had lots of fun. Nice place for you to be living. You should be happy.


You are presenting yourself as the fraud expert, you figure out for yourself what was going on back in the day here in Colorado. I'd be amazed if any gas producer was succeeding in dishonest commerce in this region these days. From what I have seen, it is very tightly regulated.


As for posting documents, I'd hate to post anything on here and have you make some crazy remark about posting a fraudulent document. I do plan to get the water production numbers tomorrow to compare to what you posted.


Not sure who "Eye Heart Properties, LLC" is. Google comes up empty on that entity. Not sure who Eli Rebich is, he doesn't hang out on linkedIn, he has only one contact on there.


Not sure why you are convinced that Ed Lane is behind Big Run Production. To my knowledge he is not infinitely wealthy. He is living on his retirement from working with El Paso Gas for nearly 30 years. I'm guessing on that number.


Who ever owns Big Run Production has every right to the earnings that were agreed upon when they drilled the wells. They have no way of preventing the apportioned shares from going to the legal mineral rights share holders. No one is cheating anyone out of royalties. At least, as I suspected, Blanch is getting a full 1/5 of whatever the original cut was. As compared to Dad's 1/15.

I did run some numbers over the last two years of gas production from Argenta 18 and Argenta 19. At $2 gas the 19 made about $206K in a year and the 18 made about $14k in a year.


I look forward to calling Big Run Production tomorrow to get my own clear information and facts that I can post on here.


By the way, is that the fraudulent photo that is posted on here as YOUR avatar image? I guess you posted it and just forgot.


James

16

To my knowledge there was never an electric pump installed on this site, the 18 and 19, since there is no power available on the site.

j

17

The actual production is Argenta 18, 11-25mcf/day and the Argenta 19, 220-312mcf/day. Based on the past two years of production.

James

18

Who took the photo, William? And when? I'm guessing if you did or you had someone do it, that would be trespassing. Not too smart of you to be using it as your avatar pic. That would suggest that you took it.

James

19

My fraud of a profile photo what well is it the 18 or 19 ?..

20

Mr. Lane would you please answer this one question !!. What well is my profile photo ?.. Mom and I would really like to know .

I've a good Idea how about I hire a meter reading witnessing firm to read all the meters for a few months ?. What do you think ?

Mr. Tompkins