Does anyone know if Gulfport is in financial trouble? They are 60 days late on payments and just tell me they will pay me when they pay me. I'm sure as a landowner if they go under I will be one of the last to be paid. I would hate to lose the whole first year production. Been in production since May and they have not even sent out division orders yet. The units that went into production before mine where 30 days late on first checks and now they are up to 60 days late. I have done everything my lease requires, sent default letter, called and talked to them and their attitude is it is my problem not a problem for them. They claim the royalties are in escrow and are safe but won't send me written verification.
My checks from Gulfport arrive like clockwork at the end of each month. It has been this way since production started (a few years). I am not sure how soon they started paying after production started because I wasn't paying attention, so it is possible there was a decent delay there, not sure. So, if your only indication that they are in trouble is that they haven't paid you yet, I would guess that is incorrect. I understand your frustration though. Hope this helps.
my bet is that if they are holding it in escrow, it is because they think that you may not be the owner of all or part of the mineral rights. You may want to consider getting an attorney, especially since it has been producing for 7 months now. If you are clearly owner of at least part of the mineral rights, you should at least be getting royalties for the undisputed portion if that would be the case.
I would agree with this assessment. They may think you are not the owner of the mineral rights.
Some of the parcels in the unit are co owned and I contacted them to make sure they sent out checks to both of us. The checks from the shallow wells come with all our names on them. When the checks total $100 a year that is not a problem but when they are 100k a month I wanted them to split it. I contacted them in March when the wells where being fracked to address this and they replied it would be taken care of when they started working on the division orders. I emailed them again in Aug. with no reply. I emailed them again the second week of Sept. Received a call back this time and was told it would be taken care of when they started working on division order. I explained that checks where due at the end of the month so they should have already been working on them. Was told they wanted to redo all the mineral searches before working on the division orders and they may start reviewing the mineral searches in Oct. I sent them a default letter as required by my lease when the first payment was late. This time an attorney with gulfport called me and told me they didn't have to pay on time because of the Good Faith clause in the lease if there was question about mineral ownership. I asked him what the question was and he said he did not know if there was one as they had not reviewed the mineral rights yet. I explained this was a lack of effort on their part not good faith question. This is why they have 4 months from when they start selling production to issue first checks. Called again the end of Oct. and was told mineral rights review was done and I would have my division order with in 2 weeks and checks would be sent out as soon as I returned it. It is now Dec. and no division order no check.
To be honest, all that stuff takes a long time. I'm not saying that what they are doing is right, or legal/permissible under your lease, but it's possible they are actually working on it. I'd stay on them if I were you, if you are at wit's end and don't think you can get anywhere yourself, get an attorney involved.
Yeah G.H. I am about there. This property was permitted June 2011 and Gulfport is the 3rd lease holder. Each company did some work and each time they pulled in with equipment and went to work you get excited and think hey this is really going to happen. When it finally went into production and you see production numbers on the odnr quarterly report you breath a sigh of relief and set back and wait for that first check. When it doesn't come month after month it is a little concerning.
I think you'll get the checks if you wait, assuming there's no problem with your ownership of the mineral rights, but totally understand your frustrations. If you have any questions for me about my experience with Gulfport you can send me a message.
Making progress. Division orders received. Of the 4 parcels in the unit one is underpaid, 2 are over paid and one was left off. We at least have something to work with.
The dormant mineral act does not apply to these parcels as there have been producing wells on them since the 1930's. 3 of the 4 parcels have been figured out and corrected and the fourth may take little time.