Problems Obtaining Revenues from New Operator

Our company owns a non-operating working interest in a well in Ector County, Texas. Until about a year ago, Conoco/Phillips was purchasing the oil and paying us directly for the revenues. Sometime last year, the operator began distributing the oil revenues from the well. We were unaware of this change, but posted an inquiry to Phillips when we stopped receiving revenues. Phillips directed us back to our well's operator.

On inquiry, the new operator told us that it received the paydeck from Conoco/Phillips shortly before that company's restructure, that the paydeck did not include our name or decimal interest, and that the operator would go back to Phillips and right the situation then send us an accounting. That exchange was in March of this year. Since then, we have heard nothing from the operator and cannot get anyone within the organization to answer our inquiries about progress. Meanwhile, we continue to receive joint interest billings from this operator for our share of the well costs.

I would like to know if this is a common experience these days, now that operators and purchasers are changing so frequently, if anyone else out there has experienced this, and what avenues we may have for redress. The amount of money involved is not huge, but the frustration factor sure is.

Thanks for any advice you all may have.

Robin Hogan

Hi, Robin -

I've never heard of that one, but the Mineral Appraisal Rolls may have your interests listed.

If you will tell me the name of the well, I'll pull down what I can for you from DrillingInfo.

If you would prefer to do so privately, accept my invitation to become "A Friend" on The Forum and you can send the information that way.

Charles

Charles Emery Tooke III

Certified Professional Landman

Fort Worth, Texas

I am so grateful for your help. I do not mind giving you the name of the well, though I was also happy to accept your Friend invitation. The well is the Susie A-5, located generally in the NW/4 SE/4, W/2 NE/4 Section 5, Block 45, T-1-N, T&P RR Co. Survey. Thank you so much.

Robin

Robin -

Your Working Interest does not appear separately from Jay Management's on the Mineral Appraisal Rolls.

But, I've got a good lead on who to contact in order to determine who is supposed to be paying you your royalties:

Sunoco took over purchasing the oil beginning December 2011. I have contact information for them and will call them in the morning.

And, DCP Midsteam appears to have been purchasing the gas for many years now. I have a number for them and will call them in the morning as well.

What I need is the name your Working and/or Royalty Interests are under. How much interest you own would probably help as well.

They may both request written permission from you to contact them on your behalf. Have to wait and see about that part.

Oh, and you appear to have interest in two (2) wells - the Susie -A- No 4 and No 5, not just one. At least, the production is being reported together.

They don't produce very much - right now only 2.8 BOPD and 5.6 MCFD, but could be holding the deeper rights.

If they do, that could turn out to be a VERY good thing to have right now in the Permian Basin. More about that later.

Who do I tell these companies I am calling on behalf of?

Hope this helps -

Charles

Thanks so much. We have been getting the gas runs from the Susie A-5 from DCP, just the oil runs have been missing. Strange that you should mention the Susie A-4 today - I heard from Jay that we should have an interest in both wells, though we've never been billed for the A-4. Maybe they bill for both wells under the A-5 banner. In any event, the company name is DCB Oil & Gas, Inc. The working interest is .0290625 and the NRI is .0217968. Jay contacted me yesterday and is putting us back into pay status, but they feel it will take some time to figure out the amount we are owed for back payments. That is where Sunoco would come in very handy. I imagine they can easily find out where our revenue stream was going, and how much we were owed. If a printed communication from this site would be helpful in the matter, you certainly have the authority to contact Sunoco on our behalf. If you need more, please e-mail me at dcboilandgas@att.net and I will be happy to send what might be needed.

That is exciting about the Permian Basin production. We have some properties in several PB counties that are already into re-development.

Thank you so much for your help. I certainly appreciate it and would love to speak with you if you will e-mail me your number.

Robin

1 Like

Robin -

I am pleased to hear that Jay is coming around. Hopefully, all of your concerns will be addressed and issues resolved in quick order.

The following link will allow you to download everything I was able to find on your interests:

http://www.yousendit.com/download/WFJWSXR6Q0M4NVh2bk1UQw

See the Price Data Hub Pages (Page 26 under the #4 Well Information and Page 24 under the #5 Well Information). Because production from the wells has been reported together over the years (single tank battery, single gas meter), these Hub Pages should be identical.

With this information, you and Jay should be able to very easily determine what share of the oil production is yours.

Wish it could be more oil, but that's not within my mere, humble, SuperLandman powers...

I have also included a FAQ page from ConocoPhillips' website. I can't find where I saved the address to it, but if you still feel you need to contact them for any reason, I'm sure a link to the page is on their website.

The Forum considers direct contact information for guys like me posted on the general Forum platform to be a form of solicitation for work. I fully understand their point of view and do not disagree with it.

Now that you have accepted my invitation to become "A Friend" on The Forum, however, if you will check your Inbox you will see that I have (well, will in a minute) send you my personal contact information.

Hope this helps -

Charles

PS: If you do not already know this, you should ask Jay or determine by a review of the Courthouse Records just how much acreage your Working Interests are in and to what depths. 2.9+% WI in any deep rights in the Permian, etc, could prove to be much more valuable than the presently existing production.

Thank you very much, Charles. I am very happy to have had your help in this matter, and very happy to have your contact information as well. You have been most kind, and I look forward to speaking with you in the future.