Improper check deductions

I am experiencing improper deductions from my royalty check from Ultra Resources, is anyone experiencing same?

Views: 1034

▶ Reply to This

Replies to This Discussion

Permalink Reply by Mary on November 5, 2013 at 10:49am
We don't know what deductions are being withheld just that the same 16% comes out every monthly check from Chevron for what they call 'cost adjustment'.
Permalink Reply by Andy Berenty on November 5, 2013 at 11:05am

Mary, you need to read your lease contract, specifically the addendum section to see if you have a "NO COST DEDUCTION CLAUSE"  included.  If you do have such a clause see if it reads DENYING the company from taking deductions from your check.  The term "cost adjustment" is definitely suspect, but it depends on your CONRACT lease agreement language.

Permalink Reply by Mary on November 6, 2013 at 11:27pm

Hi Andy, our Lease was from 2009 and at that time we didn't realize that we could use the 'no cost deduction clause' so unfortunately, they can deduct expenses. The only good thing is that we have a clause stating that we can audit the finances of our well. It seems as if we are the only land owner in our unit that has this clause.

Permalink Reply by Andy Berenty on November 11, 2013 at 4:44am

Hi Mary,

 

That is unfortunate contract language since the most important clause is not present for your royalty protection.  I have the no deduction clause and I am still being charged for production costs.  I am looking for other individuals who might have the same experience with Ultra Resources with the possibility of initiating a class action.

Auditing a company's books I understand is not an easy undertaking and left best to a professional.  Hoping the best for you.

Permalink Reply by Gas Boy on November 11, 2013 at 2:21pm

Mary,

You need to verify that your production volumes are matching what is reported to the state.  Chevron is well known for underpaying royalties to lessors!

Permalink Reply by Trapper on November 5, 2013 at 12:58pm

How many dollars per acre are you grossing? How many wells in your unit?

Permalink Reply by Andy Berenty on November 5, 2013 at 3:30pm

Trapper, I'm a little confused by your reply to my post, of what relevance is your inquiry?

Permalink Reply by Trapper on November 5, 2013 at 4:32pm
We are always interested in what we have to look forward to. That's all.
Sorry if I offended you.

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service