Royalty Checks Reduced by Negative Royalties

My mineral rights are in Weld County, Colorado where Anadarko recently sold to Oxyroyalty and I’ve been trying to figure out the check statements. Starting with November the last three checks have made adjustments from previous months. Anadarko had done this but on a smaller scale and usually to the good; these are much larger amounts that reduce my checks by about a third. The gross value will be negative for some or all of the wells in a given time period. Taxes and transportation are credited to the owner net if it’s oil. If it’s gas they only credit tax which means they’re charging a larger fee for processing; it becomes 28% of gross when before it was 19%.

The amount from previous months upon which royalty was calculated corresponds exactly to the monthly value production report from COGIS. Isn’t royalty interest supposed to be based on that? Can anyone provide some insight on this?

1 Like

This topic was automatically closed after 90 days. New replies are no longer allowed.