Just got a Gulfport check - our deductions (with the no deductions but market enhancement clause lease) has now risen to 35%.  Production was also cut in half.  This is so frustrating that there is so little information out there for the property owner to educate themselves and/or manage this process.  If my lease says no deductions directly or indirectly for gathering -  than I should not be charged for gathering as a market enhancement.  Why does this charge fluctuate every month - always going up but never down?  We as landowners are a part of this business so why are we not entitled to the proper information to manage our business?  If as a business owner I am paying for market enhancement costs than as a business owner I should be entitled to a breakdown of that information each month as well.  If I rent you apartment and the lease says you have to pay half of the electric bill over $100 - you get to see the elctric bill to verify you are paying your proper part.  And your part is always the same percentage just a different cost based on the size of the bill!    Sooooo frustrating :-(

 

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1.72

Kas, I sent you a friend request so that we might compare notes in private.

Lot of times they shut wells nearly off when bringing new well on line could b problem or other factors. Hope this helps

My well is Mohawk Warrior. Last June start-up also

Rice drilled wells? Does rice own the pipeline to these well also?

Yes Rice drilled and mutually owned with Gulfport.  Rice Midstream on the pipleine.

For the record, I also receive royalty payments from GPOR (for almost 2 years). I have found them to be very fair with deductions and responsive to inquiries regarding problems. A few comments:
1. Carefully read your lease and compare deductions to lease language. If you feel you've been shortchanged, call GPOR's Oklahoma City land people and discuss the matter. I have found them to be reasonable.
2. Rice in the mix is another matter. They could be the culprit here. I have no experience with them, but recognize their well names.
3. Natural gas and NGL prices bottomed out in February. Compare the commodity prices on your GPOR statement to previous months. Prices seem to be consistently improving now,
but my guarantee going forward.
Good luck,
BluFlame

I agree that prices are affecting royalties, but we are talking about a 50% reduction of production in one month. Impossible unless choked back right?

Can't you just compare the quantity produced to previous months to see if it's been cut back?  Choking back due to low prices would be my guess, but you never know with this stuff unless you can interpret the numbers.  

Or is there something else on your statement, like random deductions, obfuscating the issue?

Wow, glad to see Rice held up their end of the deal (even though you shouldn't have had to contact them about it in the first place), but that's awful about Gulfport.  I hope you are able to find a way to make them fix the issue.

K2,

What well are you on? We are having the same issues.

Albert,

We are in the Son-uva-Digger and Golddigger wells.  The SuD well is the one with the lease that does not allow for the charges.  What well are you in?

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