Replies to This Discussion

Permalink Reply by LW on August 14, 2013 at 11:11am

They do seem to be slow. I'd call and ask.

Permalink Reply by wyalusing jim on August 14, 2013 at 1:57pm

same situation here as in the op. I emailed and they said that they did not receive the paperwork in time to get do's out this month.

there are also situations where any of the jv partners may elect not to participate in a well or in individual leases in units.

wj

Permalink Reply by Tom R on August 15, 2013 at 9:04am

Thanks for the input .Managed to track down contact info and got hold of them. They said they were not participating in the production of my unit. Confusing because in an earlier contact with CHK I was told Mitsui was one of the partners and they are on most of the lease assignments etc. that I've been able to find. While I've heard there are differences between the production reports from the state and the numbers on the royalty statements it will be interesting to see just how big the difference turns out to be, if it's 1/6 of the state reported production I'll be real suspicious!

Permalink Reply by wyalusing jim on August 15, 2013 at 2:21pm

tom, they can elect to participate on a month to month basis also, as well as change their percentage of participation.

on the state reporting, you have to use a conversion factor because the state requires different parameters than the industry uses. yeah I know, why did the state have to complicate things even further?

even if you convert the state numbers, there are often mistakes made when the companies report. in my opinion the state gathered info is pretty much useless to us as mineral owners.

wj

Permalink Reply by Tom R on August 16, 2013 at 9:02am

A bit surprising that they can vary from month to month... though I can see reasons why they might want to. Was interesting to see the differences in the info on the DO's. Anadarko said flat out "This Division Order represents Anadarkos 33.75% share of your total unit royalty interest."  Statoil gave a small number for the "Owner Interest" figure, working backwards it appears they are claiming 16.25% of the production. So that should leave CHK with 50%. Got checks and statements from CHK and Stat,, when I get Anadarko's will be interesting to see how well the ratios hold up with the reported production from each co.

Permalink Reply by LW on August 16, 2013 at 4:03pm

If they choose not to participate, do they issue a new DO?

Permalink Reply by wyalusing jim on August 17, 2013 at 10:29am

lw, if a company does not participate, there will be no do's from them.

tom, in addition to the major percentages ,apc, chk, sto and mepi, there are other small minor percentages in some units. typically chk pays the royalties on those in addition to their own.

to get the actual division of interest percentages in your unit, call chk and ask for them. it's rare for the percentages that you listed to occur.

and then, if you multiply the total production of the well times the real division of interest, it should equal the reported amount of production on your royalty statement, though it rarely does.

often, there are revisions to royalty statements which correct previous errors months after the original payments have been made.

good luck figuring it all out and keeping track, it will be quite a chore I assure you.

one way that I use to make a quick check is, to calculate a weighted average price for the jv partners, and then multiply that times the total production times my division of interest in the unit. if that comes out close, I figure it's ok.

lately though, it aint even close.

wj