Oil companies in Bakken suddenly collecting "Other Costs" of 15% +

Our lease says “To deliver to the credit of Lessor, free of cost, in the pipeline to which Lessee may connect wells on said land…”

For 2 years they didn’t take any “other” charges. Then in January 2015 they started taking over 15% with no communication. I sent an email in August to their mineral owners email and no response. Anyone else having this issue and what is your experience?

Christine, We have had a similar thing happen in East Texas. About 6 months ago, both Sabine and Samson increased the "expenses, transportation, etc. costs" . It appears Samson increased the amount taken by about 20% and Sabine increased the amount taken by about 40%. The owners relation department at Sabine says "due to the drop in commodity prices, everyone's check have dropped". We can calculate the drop in commodity prices, but these additional charges are questionable. Samson will reply to our emails now, but Sabine is silent. Kathy

They will try to take advantage of you if they can,Devon did the same thing until it was brought to their attention and then they issued credits.

Need to stay on top of things and have your lease gone over by a oil and gas attorney so you know your rights..good luck.

The oil and gas companies know that the legal expense to recoup these funds will far exceed the recovery. Because the terms of most oil and gas leases vary, there is very little chance of them being hit with a class action, especially in the state of Texas.

Just remember who these companies are, and never lease any more land to them. Once a crook, always a crook.