I had not been getting a revenue check and contacted Javelin Energy Partners owner relations dept. This was their reply:
*“Your account is in pay status but it appears there was an adjustment made by Accounting last month for an overpayment from December 2021. Therefore, your account is currently in negative suspense. Once production accrues to cover this amount, you will start receiving your royalty payments again.”
In December of 2021 FDL was the operator. FDL resigned as operator, Javelin was named as successor and in March of 2022 they issued their first revenue check to the owners.
I’m just perplexed how they are able to deduct when they did not have a lease at the time.
Typically, when a property changes hands, any known over/under payments are adjusted into the purchase price and carried forward to the new Operator. In your case, FDL would have no way of recovering the overpayment since they could no longer net you so they were compensated by Javelin for that receivable asset and it became Javelin’s to collect.
You aren’t entitled to a free lunch.
Wow… Ok…I do think I am entitled to be informed about the adjustment, a statement showing the deductions and the total amount of the deduction.
Thank you for taking the time to respond even though it was a little curt.
Send a request by Certified mail return receipt for a copy of the statement showing the overpayments.
Thank you. I had requested it from the person who informed me but never heard back. I will follow your advise.