Hello,
I recently compared the statements of my oil royalty checks for the gross volume being paid on and the Texas RRC website and Texas Comptrollers office for what the oil company reported as gross volume. The amounts do not match up from my statement to the websites. Can someone tell me if I should be concerned with this and if so who should I contact for help as I believe I might be owed royalties for the discrepancies. I have contacted owner relations with no reply thus far.
For oil, the match is for disposition volume, rather than production volume for each production month. Do the reported oil sales revenues reported to the TX Comptroller match gross oil sales on your check for that month? For gas, the volumes will not match because there is line loss for gas traveling through the pipeline to the processing plant, gas consumed by the compressors along the pipeline and gas used by the plant during processing. Also, some operators will separate gas and products (ngl) into 2 separate lines on the check and others will combine them. You need to compare the gross gas and ngl sales revenues reported to the TX Comptroller to the sales reported on your check detail. Also, is your royalty decimal based on all the acreage in the unit/well, or is it a larger decimal calculated only for your tract interest? If it is a larger tract decimal, then the volumes and sales will be proportionately reduced. Is this a problem every month or a one-time issue?
I looked at the disposition volumes when comparing the amounts. The problem has occurred at least dating back to July 2023. Haven’t researched further than that. The percentage is not in question as I have two other wells that are being operated by same operator (Callon). Those numbers match up exactly. Only this 3rd well does not.
If you identify the well, someone might be familiar with it. Is the percentage of missing barrels the same every month? One possibility is that one working interest is taking its share of oil in kind and the check volume is the remaining volume. If so, the check should show both your royalty decimal and a higher payment or settlement decimal which is being applied. Unfortunately, there may be a longer delay in getting questions answered due to Apache acquiring Callon.
hi dfwjwb. Do you have the well in question’s API #?
Callon finally responded and said that my well in question was actually two wells in which the disposition volumes were reported as a single unit to RRC. Further, that I did not have any owner interest in the well that I am not receiving royalties on.