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Discussion Starter #1
Looking to educate myself prior to taking on the battle with xto.
For the first time in as long as I can remember we did not receive a royalty check on a old lease. Was TW Phillips, then Phillips Production and now XTO.
When we did not receive a check in late November we contacted XTO via Email and were told that "The wells were not producing enough to be economical and there is no royalty check for Nov. or Dec." They were looking into ways to reduce the "lifting Cost" and were not sure when another check would be issued.
I just came from the wells and two of the four are off and two are producing. I can understand not receiving royalties for the two wells that are off but why no payment for the two producing wells? 1/8 is the royalty along with free gas to the house.
I have never seen original lease so I cant comment on the language in it. Where would I find a copy of the lease? I would estimate the TW Phillips lease was entered into in the early 1950's.
Thank you in advance, any info, links or experience would help educate me in this matter.
 

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if your royalties checks were small I wouldn't say a word cause soon the lease will be null and void and you will be free to lease to another company if they shut them off because the lease will no longer "be held by production"
 

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Discussion Starter #3
Lately aprox 300 to 400 per month. Not getting rich but enough to pay the taxes.
 

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Some companies have a minimum for royalty check issuance.

If your production is under that for the month then that month will roll on to the next month's payment.
 

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Discussion Starter #7
To clarify, the lease was entered into in the early fifties, but they plugged the original well and punched four new ones about 6 years ago. All on the original leased ground.
I would love to read the lease. Where would one find it? Court house? What office? Would a attorney be needed? I will be getting into this after the holidays. Thank you
 

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M70 - I would telephone XTO directly, and ask them for a copy of your lease. I do not know much about that type of lease, but it sounds offhand to be a rather long lease if it's original terms and conditions still apply after 60 years or so, and after being assigned to several successor companies. In addition to making sure that you are receiving the contracted royalty payment, you'd want to determine if the lease, as originally written, is still applicable.
 

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If I get this correct, you are receiving royalties from 2 wells, but not from the two others as they are shut-in? Based on this information under the operations clause of the lease, the lease is held by production and is not valid excuse for the landowner. The Lessee has the right not to produce the wells if it is not economical. Because they are issuing a royalty check from the other two wells, they do not need to make any other payments to keep the lease valid. Now if the property under the two wells that aren't producing, XTO would have to make Shut-In payments to keep the lease active or re-work the non-producing wells depending on how the lease is written.
 

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HARRISBURG, Pa. (AP) — Pennsylvania Attorney General Kathleen Kane is reviewing whether her office has jurisdiction to look into complaints about the costs deducted by natural gas exploration giant Chesapeake Energy before it pays landowner royalties.

A Kane spokesman said Saturday the office was undertaking the review at the request of state Sen. Gene Yaw.

Yaw's northern Pennsylvania district includes heavily drilled areas of the Marcellus Shale reservoir.

Yaw wrote Thursday to Kane and asked for an immediate inquiry. He says his office has been inundated with complaints primarily involving the deduction of post-production costs by the Oklahoma City-based Chesapeake Energy.

He says the deductions sometimes exceed the amount of the royalty check and that one landowner complained it was costing them money to have gas extracted from their property.

Chesapeake Energy isn't commenting.


http://lancasteronline.com/news/pennsylv...94a9999dc4.html
 

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talk to the well tender, sometimes you can get an idea from what's up.also,royalty payments have been way down for awhile in the county
 
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