CHK royalty check for 04/14 shows adjustments for 9/13-12/13 with GAS up in volume & price& NGL down in volume & price. The first numbers for Gas(2) were my original, the second numbers are my adjustment. Same for NGL(4) original top, adjustment bottom. My question is do you know why this occurs. CHK gave no explanation. Thank you for input.
Date Gas/NGL Price PY GP Volume
913 2 2.097 201G -1901.96
913 2 2.255 201G 1957.50
913 4 0.674 201N -10122.98
913 4 0.645 201N 8660.68
I wish I knew the answer to this...the last two checks I have received had this adjustment on them...going all the way back to 1/13..
Hi Sonia,
This is what I received from CHK in reference to that same question.
The purchaser came back and did adjustments for the actual price/volume received for those production months. That is why you see the in’s and out’s on the check stub.
Thank you,
Revenue Team
My message from CHK Revenue almost exactly like Sonia's. "We show that the purchaser did adjustments on the volume and price of what was produced on the well for 09/13-12/13 production."
Since I know nothing about this industry...why is this done? Why would "adjustment" be needed? was the product not measured accurately upon purchase? Just wandering and showing my ignorance..
Peg, those are my questions. There is a meter on the well I thought so don't understand volume adjustment. I do see a pattern of increase gas & decrease NGL. Do you? Someone said they estimate to meet Tx RR requirements of paying royalties on time. I'm guessing they audit later & adjust. I only saw a 0.1% change over the 3 month changes in my royalty. Wasn't worth fighting but needs monitoring. Wish one of the professionals on the forum would comment.
While I'm not as smart as some on here, I would consider myself one of the forum professionals. That being said, even I don't know the answer to your question either. All I know is what CHK already told you, but not the true reasoning behind the corrections. I've just learned from experience that past adjustments to your royalty check is standard operating procedure. And actually, from personal experience, CHK is pretty good about having very little adjustments. My monthly checks from EP Energy (for 8 total wells on 1 check) are usually 25-35 pages long due to all of the price adjustments going back over a year. And that's EVERY month! This month was actually 36 pages - they basically just get longer every month!
All that being said, It's great that you are all paying such close attention to these details! You never know when the Oil Co.'s will make a mistake. Sorry I'm not of more help!
Texas Tea, While you're here, what happened to April disposition on Schwope South API 283-33632? Did they shut down because maybe Carrizo was drilling their 3 new permits in Abstract 435? Do you have "eyes in the oil field"?
Texas Tea said:
While I'm not as smart as some on here, I would consider myself one of the forum professionals. That being said, even I don't know the answer to your question either. All I know is what CHK already told you, but not the true reasoning behind the corrections. I've just learned from experience that past adjustments to your royalty check is standard operating procedure. And actually, from personal experience, CHK is pretty good about having very little adjustments. My monthly checks from EP Energy (for 8 total wells on 1 check) are usually 25-35 pages long due to all of the price adjustments going back over a year. And that's EVERY month! This month was actually 36 pages - they basically just get longer every month!
All that being said, It's great that you are all paying such close attention to these details! You never know when the Oil Co.'s will make a mistake. Sorry I'm not of more help!
Unfortunately, I'm not around the area as much anymore and therefore my intel isn't what it used to be. I do see where production has dropped off pretty significantly in April and your suspicions would certainly be my best guess as well. I do know that the Arnold -C- 50H (to the west of Schwope) was spud on 4-16 and the Arnold -D- 55H & 54H (Southwest) were spud on 4-10 and 4-19 respectively. However, wells are typically shut in more for frac'ing in the area and I just don't know whether or not any wells were. May production numbers should tell us a little more about what happened. Hopefully it'll bounce back closer to where it was. Sorry I can't be of more help.