I just received the suspense funds for three wells in Hughes County. The gross/net total seems to check out but I cant seem to math the interest they included with my own calculations when compared against the revenue statement. It seems like less than the statutory 12%. Would someone be willing to help me math?
Your spreadsheet calculation would be the total late payment of royalty for each month by number of months late at 1% per month. So if royalties are due in January and received in June, it would be 5 months. February royalty due would be 4 months. Usually due date for first production month of the well is due later than the subsequent months.
If you were in suspense due to a title issue you would only get 6% interest up through Nov 2018 and whatever the prime rate was from Dec 2018 to current.
No, it was because the pooling and division orders identified the wrong person. There’s another person with my name in my state - as unique as my name is - and they sent all correspondence to her at her address. It wasn’t under the prior company transferred wells to a new one that it was discovered. That said, I think I figured out. I was calculating just using 12% generally. What I ended up doing is calculating the gross total of each well X the decimal X royalty percentage. It got it closer to the amount I received, not exact, and I still don’t know if I’m doing it correctly - just following dubious math hunches.