Posting picture for John Morgan…
What is your question? I assume it it about high post production charges. That well is a gas well that has been producing from 199-2012 and then recently started again with a new operator. I would suggest that you go back to original lease and see if it says “gross” royalty. Looks like they are charging very high post production charges (PPC). See if your lease allows them or not. Quite often, the accounting software is auto-default to PPC and you have to fuss at the operator to change it to match your lease terms.
This is all we got Regarding this well:
6.2 OPTION OF $50.00 PER ACRE WITH 3/16THS ROYALTY AS MORE FULLY SET OUT BELOW: To accept the sum of Fifty Dollars ($50.00) per acre and the normal 1/8 of 8/8 royalty interest, as defined in 52.O.S. , section 87.1(e) (1981) plus an excess royalty of 1/16th as a fair reasonable and equitable bonus to be paid unto each owner who elects not to participate in said well by paying such owner’s proportionate share of the costs thereof, such cash bonus to be paid within thirty (30) days from the date of this Order and when so paid shall be satisfaction in full for all rights and interests of such owner in the well covered hereby. The statutory royalty of 1/8th of 8/8 plus an excess royalty of 1/16th , of all oil, casinghead gas, natural gas, and natural gas condensed, produced and saved from any well drilled under this Order, shall be delivered to the credit of such owner into the lease tank battery or into the pipeline to which said well is connected , free and clear of all costs, expenses, and risks incurred in or in connection with the drilling ,testing, completing, equipping and operating of the well covered hereby.
How is this information to be understood regarding all of those taxes, fees, listed on the check ?
Richard and Martha… (posting for John). I have discovered from Just a few minutes ago , from a conversation with the OCC, that there’s no Signed OG Lease if someone is or has been pooled !!! And a lot of people have been complaining to the OCC, about those Exorbitant Charges. And that I needed to talk with an OGL Attorney. Would you repost what you shared with Martha, so Richard the Attorney in forum where we exchange information among ourselves can take a look and say something? TKU JOHN
This topic was automatically closed after 90 days. New replies are no longer allowed.