Royalties? What do I do to get?

I have leased property, wells were built…our family name of Russell was put on their names of the well. I checked with the WV gas reporting agency and it shows production in the last quarter. No division order has been sent to me. I have yet to see any royalties yet they are producing great. My leases are on file with the tax dept. What do I do to get the royalties owed me???

You need to contact the operator of the well & let them know you haven’t been paid. It is possible the operator doesn’t know where you live- doubtful, but possible.

Thanks Todd for your response. They do have my correct address. My mortgage is paid in full and I will never move and I have lived here for years. I haven’t received any division orders. They have been producing well over 700,000 cubic, each well, since 2017. I have checked to see if any payments went to escrow and none shown. Both my brother and I are not receiving anything. Last quarter production was over 300,000 cubic for each well…there are 4…we get 15% without any pre or post production costs…true that we each own a fractional amount but using an online royalty calculator with $1.75 and our net area we should have gotten several thousand dollars by now…at least our tax forms for 2017, and 2018 should have been mailed to us. Is a division order needed in W.V. this is our first time leasing after we inherited and all paperwork is in at the proper state agencies recorded. I don’t know what to do but I did send an email to Northeast Natural Energy earlier today.

Hi Debra, I just read your post. I’ve been following the regional drilling progress since my mother was contacted by a “landman” on behalf of Northeast Nat Resources a few years back. I’m handling the deal on her behalf (she is 78) and I’m a equities/commodities trader and deal in mkts daily. My firm has also handled many investments (both public companies and private equity) in the energy sector over the years. So it sounds like you and my mom are in the same place with Northeast regarding production without payment. That’s good to know as I haven’t yet ingaged in discussing the matters with NE, waiting to hear if this was on ongoing concern for others. Its interesting that last year WV had passed a law protecting co-tenant mineral owners…ect. Basically insuring payment directly or via esscrow acct held by State Treasurer. It sounds great however doesn’t clearly define a penalty/enforcement process or in other words,…it’s unclear the state has the adaquite resources in place to monitor and ensure companies are making a timely and accurate compensation commitment to entitled parties! I will start making some calls to inquire about the status of Northeast. Northeast Natural in actually owned by a private equity firm in Texas. I will let you know what I can find out. I’m from Cleveland OH so not as familiar with the land. Your wells are located in Monongahela County, Batelle District? And do you have a well permit number? If you like to email me directly, as I don’t always check the msg board, please fell free. Thanks, J.

I also leased to Northeast two years ago. I know they built a pad and had started drilling. Have not heard anything since. In same county as yours but I do not know how to learn anything, as I live in Texas. Prospect name- Ragtown Battelle Unit name- McCellan South 2016/McClellan North 2016; Index number 2423A; Tax map- 24 ; 20.41250000 gross AC. Sure would appreciate any help anyone can do. Thank you, Carol Dakan

Carol the McClellan land meets or actually butts right next door to ours… McClellan is referenced in my leases as such… none of my relatives have seen anything either. I can send you the API numbers of the Russell wells. Have you received any division orders?

We maybe related if your property is such. I own tax map 19 parcel 10,11,9…tax map 24 parcel 26 p/o( partial owner)…tax map 26 parcel 7 p/o

I never received any division orders. Do you know how I would find out about my location?

I think we are related possibly…via the Russell/Adkins. Hearing that NNE is based out of texas is bad…as I was reading that there is a company there sending out leases…producing then claiming you don’t actually “OWN” your property, and they don’t send out division orders…sounds suspisous… NNE did register my leases with the deeds record dept of WV. With one well producing over 1,274,241 cubic feet and 15% with NO pre or post production costs… someone owes our family some money. Please stay in touch. I have been watching this site to see if anyone was going through the same and I posted this about a year and a half ago too…but no real responses

Carol, thanks for your post! If anyone else on this msg board is having problems receiving due compensation please post a comment. Also, (especially dealing with Northeast Natural) if you could give as much reasonable information about your well(s)/ location. This will certainly help me when communicating with Northeast regarding their compensation effort. Please know, I’m am not asking for well locations because of being nosey, as I live in Clev OH and would be lost the mountains of WV. Location and indenification are important in gaining production information for audit. This information is also very helpful when a law firm is communicating with state officials. The worst threat to an oil company is to impede production in this case for audit concerns.

Regards, J.

They aren’t permits anymore, since 2016…the Russell/Beech wells have been producing good since 2017… with 1 well API 47-061-01666 (10H) producing over 1,274,241 cubic. There are 4 in total that carry my family maternal name of Russell. I checked with the state escrow to see if anything was there and nothing for any of my family members. We haven’t even seen division orders yet. Steve was our land man. I have 3 leases…yet my aunt only got 2 , and hasn’t signed off on the last one yet. I am supposed to be getting 15% royalties with NO deduction for post or pre production costs. My family was from Ohio also. Russell/Adkins…we may be related…as the property came from my grandma who had several brothers but all have long past. I sent an email and I will be calling them in the morning. My aunt who hasn’t signed off on the last lease is dealing with a man named Blake at NNE. I will be talking with my aunt in the morning also.

I live in Arizona…lol… but yes I will pull out the data and post info in the morning. I checked around and it shows some data regarding royalty payments for certain parcels… but no image to be looking at yet as the info has not yet been verified by the records agency…shows the date of 8/2/2019 that they were filed. Shows several of these… but for lil amounts like $200- $4590…if these are divided up that would leave just pennies for us. I’d like to know how they are paying royalties without division orders

For Carol and Jesse this is the info on my property and the wells lease #1 2/15/2017 property: Tax map 26 parcel 7 p/o ( partial owner) 94.1 acre #2 2/1/2018 property: tax map 19 parcel 9,10,11 & Tax map 24 parcel 26 p/o 72 acre lease #3 8/29/2018 property tax map 24 parcel 26 p/o 40 acre

Russell/beeach wells API #'s 47-061-01669 47-061-01668 47-061-01665 47-061-01666

Debra:

The email might help, but doubt it. You need to send your request for payment to NE Natural via certified mail with return receipt so you know they received it. That should get the ball rolling. Your letter should be simple and about where are my revenues from these wells. Be sure to put your legal description on the letter and well names if you have them. Wouldn’t hurt to include a completed W-9 form with your tax ID information. You can download one from the net.

I don’t know about the rules or laws concerning DO’s in WVa.

Good Luck. Todd M. Baker

I signed a lease with Northeast Natural Energy on June 6, 1917, 5 year lease. I dealt with Blake. Lease is in District of Battelle, in County of Monongalia. Property Tax Number 24-p/o 25.2. If anyone can tell me if the well is producing, I would appreciate your help. I have not signed a division order nor am I receiving any royalities. Thank you.

I am not sure I read your posts correctly, but just because your family name is on a unit doesnt mean you have mineral rights within that unit. If they drilled this unit 3 years ago, they wouldnt have come back to lease you in 2017 and 2018. I will attempt to map your parcels but I dont think I can post the results here. roger may golden, colorado.

An OPERATOR of a well should have to send you a Division Order whatever state they are in. They usually send them out 2-4 months after a well has started producing (if it is complicated). If they dont have your address they could put the revenue is “suspense”. In your case Debra, since it has been years, I would call the DO specialist or land department at the company that currently operates the wells and ask them - maybe you don’t own any minerals but you had executive rights? (rare but possible). Gene

the only well I show near your leased acreage is a permitted well (yet to be drilled)

As of this last legislative session the operator of a producing well has three months after first sale to send out royalty checks and the checks must come monthly after that. A division order is not required by law but all of the companies that are operating here in West Virginia use them. If you haven’t received a D.O. the company could have made a mistake or could have decided to try to short their royalty owners. It’s also possible that you don’t own the minerals underneath the tracts that you think you do. It’s hard to say that, though, without really digging in to the title.

So, let’s assume that you do own the minerals underneath a tract of land that has been producing gas. Either the company has screwed up and it’s breaking the law or it’s purposefully breaking the law. Either way, sending the company a letter with the API number and a copy of your lease is the first step. If the company doesn’t respond at all then it’s time to get a lawyer involved (yours truly could probably be talked in to representing you). If the company does respond and gives you an explanation as to what’s going on, post it here and we’ll try to help you understand what they’re saying.