Unresponsive Operator

I have numerous gas wells with Casillas Petroleum in Haskell County, KS and I am requesting some basic information from them but I can not get them to respond on a timely manner and when they do the answers are not what I was asking. Also I am needing a copy of the division orders for all the wells. Is there a governing body that I can lodge a complaint with that will get Casillas to respond? Thanks John

Do some research to see if Kansas has the equivalent of the Texas Railroad Commission (RRC). Last year my operator doubled what they reported to the RRC. When I sent a complaint to the operator they basically told me that I was paid properly and if the RRC #'s were wrong that’s a production reporting problem and not a sales/payment problem.

I then lodged a general complaint on the RRC’s web site but I also e-mailed the Chairman of the RRC with my complaint. Within a week both the RRC and the operator called me to say the #'s would be corrected within the week.

I would suggest sending them your demand in writing, by certified mail. I too have Casillas in Haskell County. I’ve found calling them has been more responsive than emails in most cases. Generally speaking, Casillas is good at operating wells, but is very antiquated in terms of their office operations and lack of basic functions such as no direct deposit available, no online check detail available, and below average owner relations. I had the worst time dealing them before I owned interest in their wells. Once I became an owner and they became more familiar with who I am, they don’t resist my inquiries as much.

Make sure in your request, that you make clear that you are submitting your request under the following Kansas Statute:

"Section 55-1622 of the Kansas Statutes Annotated gives an owner of a royalty interest in oil or gas produced in Kansas the right to specifically request any of the following information from a payor about the owner’s royalty payment and the wells for which payment is made:

(1) Each lease, property or well identification number used by the payor for royalty payment purposes and corresponding lease, property or well identification number(s) used for identification by the Kansas department of revenue, state corporation commission or American petroleum institute (API).

(2) Each lease, property or well name and its corresponding section, township, range and county.

(3) The field name or producing formation.

(4) For a given sales period for which payment has been received or is due the royalty owner, the total produced volume as reported for each well, lease or unit to the state corporation commission and Kansas department of revenue.

(5) A specific listing of the amount and purpose of any other deductions or adjustments from the royalty owner’s share of the sale of oil and gas not identified on the payment statement.

(6) Whether any payments reported on the payor’s statement are from a split-stream sale and, if so, the manner in which the payor accounts to the royalty owner for such sale. As used in this paragraph, “split-stream sale” means a sale for which the payment from a payor to the royalty owner is for the sale of less than all of the oil and gas produced and sold from the lease or well for the sales period.

(7) Whether the sale of any of the production for which payment is made by payor has been made to an affiliate of the payor. As used in this paragraph, “affiliate” means any entity which, directly or indirectly, controls or is controlled by, or is under common control with, the payor.

The request by the royalty owner must be made in writing, specifying the information desired and the sales period or periods for which information is needed, and must be made by certified mail. The payor must respond to such a request by certified mail not later than the 60th day after the date the request is received. A payor shall not be required to (1) provide any information pursuant to a request made on behalf of multiple royalty owners, (2) provide any information for sales periods which were prior to the 12-month period immediately preceding the first day of the month in which the request is received, except that, if adjustments to a royalty owner’s payment have been made within such 12-month period for sales periods prior to such 12-month period, information concerning such adjustments shall be provided and (3) seek information from other payors or third parties.

If a payor does not have any of the information requested by a royalty owner in accordance with this law, the payor shall provide to the royalty owner the name and address of the seller of the production for which the royalty owner is being paid by payor. A royalty owner may thereafter request from the seller the information not provided by the payor and the seller shall respond to the royalty owner, all in the same manner as provided for in this law. As used in this paragraph, “seller” means the lessee of the oil and gas lease from which a royalty owner derives its royalty interest or the operator of the oil and gas production unit which produced the oil and gas for which payment is being made.

This law is not meant to discourage or prohibit the royalty owner from contacting the payor by telephone, e-mail or other means of communication concerning the above information or any other information about the owner’s royalty payment. Additional information regarding production and related information may also be obtained by contacting the state corporation commission or Kansas geological survey, or by accessing their websites."

1 Like

Thank you so much for your help

Thank you sir I will give it a try

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