Replies to This Discussion

Permalink Reply by LewPa on March 8, 2015 at 12:18pm

Dave,

I also have a old Phillips lease signed in 2008 but it was acquired from XTO by REX Enegy. I'm also in a producing unit now with more to come shortly. In my lease under reserve gas, 200,000 cu ft is the limit, and if you don't take the gas it says you can get a $200.00 payment per year in lieu thereof. Does your lease have the payment part? I've never called them on it. Either way you have to notify them first, I'm very interested in hearing what XTO's response is to you, please keep everyone apprised. Thanks, Lew  

Permalink Reply by Dave Miller on March 8, 2015 at 7:46pm

Thanks for your response LewPa. I can take payment for the gas if I request it in writing, which I did. I think it amounts to about 1,200.00 a year for 400,000 cu. ft. I thought if I had my attorney send a letter requesting payment it would carry more weight. Wrong. Finally called XTO myself. A man Phil Thackery mentions on this site finally called me back. He told me XTO was not in the gas delivery business. I stated that I understood that. I said just pay me for the 400,000 cu. ft. He replied it is only about 1,200.00 a year don't worry about it. 1,200.00 over twenty or so years is worth something to me. On a related topic Lew I read with great interest your discussion with Phil on the Royalty Calculator thread. I have been trying to get them to stop taking deductions. I believe they are only allowed to deduct taxes.Deductions are40%  Dave

Permalink Reply by GM on March 8, 2015 at 10:32pm

I have one and the response from XTO was that it pertains only to the landowner for which the well is on. No other landowners in the unit apply. The lease language does not say that, that's what XTO say's.

The lease also does not have any language of transportation cost deduction nor a no deduction clause, but those deductions come out every check.

Good luck with that.

Permalink Reply by Dave Miller on March 9, 2015 at 10:42am

GM, Our leases are probably the same. In the unitization clause it states. The commencement, drilling, completion of or production from a well on any portion of the unit created under the terms of this paragraph shall have the same effect  upon the terms of this lease as if a well were commenced, drilled, completed or producing on the land described herein. Last March I filed a complaint with the state Attorney General's Office concerning deductions. I received a call from them asking me to attend a hearing in Pittsburgh around the first of June. Unfortunately I was on my way to Texas and could not attend. I have not heard anything since.   Dave

Permalink Reply by GM on March 9, 2015 at 11:00am

There should be somewhere online to access the results (or lack of) of the hearing?

Landowners all seem to tip toe around this issue. Checks arrive each month and nobody wants to rock the boat.

Permalink Reply by GM on March 9, 2015 at 11:07am

What happened with this? House Bill 1684

Permalink Reply by LewPa on March 9, 2015 at 11:38am

Dave, GM,

In the middle of Feb, I received a letter from lawyers in Pittsburgh pertaining to XTO's deductions from your royalties. They wanted to know if I wanted to join a group of landowners in Butler Co with Phillips leases to challenge the deductions. In my case it didn't pertain because my lease went to Rex. Rex originally took out deductions for seven months from the royalty payments, then refunded all deductions, and has been no deductions since. I didn't call them up and demand an explaination!! Only $1200.00?!?, is the guy on drugs? that payment would be for each unit that you're in. I'm about to be in three different units. Never a dull moment! Lew 

Permalink Reply by GM on March 9, 2015 at 11:58am

Consider sharing the name of the firm?

Permalink Reply by LewPa on March 9, 2015 at 12:42pm

GM,
David A Borkovic, 412-261-6400, with Jones,Gregg,Creehan&Gerace LLP in Pittsburgh. I just presumed anybody that had a old Phillips lease would have gotten a letter. Lew

Permalink Reply by Dave Miller on March 17, 2015 at 4:32am

LewPa, I was wondering if you could give me a call? My number is 724-991-7389. Thank you, Dave Miller

Permalink Reply by Philip Thackray on March 9, 2015 at 5:11pm

Dave Miller,

Here is the language in my old Phillips lease from July 2008:

"By written request to the lessee, lessor may reserve from the leased premises through any well thereon producing gas (except a well or wells utilized for storage), provided the gas pressure is high enough, gas for use in one dwelling on said premises for domestic purposes to the extent of 300,000 cubic feet per year, or such part thereof per year as Lessor requires; subject, however, to the operation and pumping by lessee of its wells and pipelines on the premises, the lessee to make the necessary connection and Lessor to assume all risk in using the gas."

See underlined wording.  The "leased premises" is your land (not the unit) and the free gas is available from any "well thereon".

The well has to be on your property to get the free gas.  Perhaps your lease has different wording.

Regards,

Phil

Permalink Reply by Dave Miller on March 9, 2015 at 7:01pm

Phil, In my reply to GM towards the top of the page,when ever you are in a unit it is the same as having a well on your property. I hope I am reading the clause correctly. It is just so frustrating to deal with. Personally I expect repercussions from my complaining about deductions and the free gas. GM thank you for the attorney's number.  Dave

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