Shell Western E&P Delay in Royalty Payment

#1

Has anyone who recently was confirmed as an heir with a right to receive royalty payments experienced a delay of over 6 months after the new account was established with Shell Western before the first payment was received?

#2

Delays are a way of life on o/g
Shell could be aware of your ownership, but still waiting on what is called “title opinion” ( if this is a drilling area)
Those can take months to research/create.

#3

Thanks for that. Months is right, but we’ve been waiting since something like July. In November, Shell Western issued an account number and a statement. I’m told they have some right due to the hurricane and flooding to allow them additional time to issue payment. They said the check was being expedited. That was November. Expedited meant 90 to 120 days. We’re now at over 150 days.

#4

Hurry up/wait. Once you receive payment, you can request interest on the funds. Im not sure what the requirements are for interest but worth a shot. Stay ontop of their owner relations dept
Call/email 1x unless they are updating you. Noisy wheel gets the attention…

#5

I'm really shocked. I'm told that no interest is paid on delays on the first payment. No explanation. Maybe due to "set up". I have never heard of a major company taking over 6 months to make a payment after recognition of the heirship rights.

#6

I had been paid for 4 years and then last April, they stopped sending payments because they “discovered” costs that should have been deducted from me. About $50k worth for 4 of us. Finally, in February, I received a 455 page check stub along with a $199 net royalty check. They still have not told me what they were “discovering” notwithstanding multiple emails, phone calls and a certified letter. They never let me know why they stopped paying and after two months, i started trying to find out what happened, but after 4 months, they apologized but kept withholding.
What a company!

#7

I'm an attorney, so I see some crazy conduct sometimes, but I can't comprehend how they don't get sued for unreasonable delay. Is there some provision you are aware of in the lease or disclosures that state they have your waiver against damages in the event they are untimely in making distributions? I have the top 1 sheet of a 427 page "Advice" to a recognized but new account, with Shell Western E&P's account number on it for hundreds of thousands of dollars dated 11/22/2017 and an email promise to expedite the distribution, expediting being defined by them as 90 to 120 days. It's now 150 days later and no payment. On top of which they originally approved this account based on a file stamped and judge-executed court order defining the heir, back in something like July or August on top of all this more recent delay. That's about 9 months of delay of payment to a recognized heir. Ever hear of anything like that?

#8

My family leased to SWEPIin 2016. A well was drilled in early 2017 and first sales was in May 2017.
We have yet to receive a royalty check. I would have to think long and hard prior to granting them another lease. I have a few leases with Concho Oil and Gas. They are a Midland based operator and are much more responsive to their royalty owners. SWEPI will need to recognize the importance of royalty relations if they are going to continue to operate in West Texas.

#9

I’m not looking to start a battle here, at all, but the delays cause owners to seek to sell to 3rd parties instead of continuing to wait for a payment. The discount they end up accepting is a loss, and I call an unnecessary loss “damages.” I can’t believe they operate like this. I can’t believe there aren’t more people who have experienced this, commenting here. I could not find any other comments about delayed payments from Shell Western E&P in the search I ran. Could be missing something, never blogged or joined a forum before, but a search on the whole site here for Shell Western E&P produced nothing. Maybe I missed something.

#10

RLN - I also have experienced long-term delay in receiving royalties owed me by SWEPI…
I note your last post is dated April 20 - have you made any progress since then?
Did your “complaints” to SWEPI yield any results?
Thanks for sharing what you know…