The HuntingPA.com Outdoor Community banner

1 - 5 of 5 Posts

·
Registered
Joined
·
6,415 Posts
Discussion Starter #1
I have a lease with 3 older 4"' shallow gaswells on my property.

A couple years ago, the lease was bought by a new company and everything was good for a while. Then they missed a month's royalty payment. It was included the month after that. But it was a month late. Sine then, there have been a couple two month periods they skipped, a 4 month period they skipped and currently they are 2 1/2 months behind. I always end up getting paid EVENTUALLY...……… But EVENTUALLY is not what the contact states. I started reading the meter about a year ago. So I know how much the wells are producing and that they are not "shut in".

I have called their main office on more than one occasion and get the same story...……...we can't pay royalties until WE get paid by the company we're selling your gas to. BALONEY !!! The lease is NOT a consignment agreement. It's an agreement to pay for gas extracted.

To call an attorney and get him involved at the cost of thousands of dollars would not be feasible considering all the more my royalty checks are for.

So, what, if anything can I do ?? Or am I just at the mercy of the gas company's willingness to pay or not pay ??
 

·
Registered
Joined
·
1,671 Posts
is there minim amount that has to be reached before it paid? I have had the same thing from time to time always paid ,but the check would look like a monthly check but be for 2 or 3 months, also there is probably a shut in clause ,I thing it 2 months
 

·
Registered
Joined
·
6,415 Posts
Discussion Starter #3
No. This company does not utilize a minimum distribution. And I've been reading the meter...…….production is significantly above what would be a minimum distribution.
 

·
Registered
Joined
·
1,671 Posts
have you talked with the well tender??, guess you need to send a letter via lawyer, if I might ask what company is it?
 

·
Registered
Joined
·
6,415 Posts
Discussion Starter #5
I have talked to a well tender AND a guy who owns a gas company himself. These folks are known for this. This is the way this company rolls. It's ALL their lease holders that get paid whenever they feel like it.

Also, a fellow mentioned the situation to a lawyer who deals in gas issues a lot. In a nutshell...……… I'm at their mercy. So long as they pay up EVENTUALLY, there's not really anything I can do about it.

What's interesting is that, in one of my calls to this company, I asked them if they supplied house gas to consumers from wells that had a free gas allotment........which, of course, they do. Then I asked them if they sent those folks a bill if they went over their allotment...…..which, of course, they do. Finally, I asked them if the customer called them and said they would pay their bill when they got around to it in a couple or 4 months what would they tell that customer...……. You can figure out the rest...….. Double standard at its finest.

And, I am sure, if I went and shut in (turned off) the wells on my property, I'd be brought up on vandalism charges or criminal mischief or something...…...
 
1 - 5 of 5 Posts
Top