WHO CHECKS THE ACCURACY OF THE REPORTED WELL OUTPUT?

No matter where your well is located, one's royalties are calculated on the basis of gross value minus the costs. I understand that-but what I have a hard time wrapping my head around is who checks up on the accuracy of the gross amount? It seems as if the assumption is that the O/G companies are squeaky clean honest and whatever they report is accurate. That may well be so, but I'd like to know that for sure and not have to take their word for it. Are there companies that can be hired by the landowner (or landowner group) that will serve as the watchdog for the landowner?

Dan

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Permalink Reply by brat on March 25, 2014 at 1:16pm

Have recently sold a portion of my gas and oil rights on the farm (sold to Bounty).  Guess I will now have a partner in this game.  One of the advantages I hope to receive is that this partner will have EXPERTS in this business of royalty accuracy and hopefully , maybe I will benefit from this watchdog partner in that respect....time will tell.

Permalink Reply by Kathi Albertson on March 25, 2014 at 1:27pm
Brat,

Can you say more about the experts in the business of royalty accuracy? I would like to know more about someone who is actually involved in checking up on gas and oil reporting.
Permalink Reply by Booger on March 25, 2014 at 3:44pm

brat - the buyers of your minerals might be selling your minerals to the driller of your minerals........if so, don't count on having a partner.

i don't know anything about bounty, but there are many buyers who are buying for the producers.

Permalink Reply by brat on March 26, 2014 at 1:50pm

Kathi and Booger,

You may be right about the reselling.  I just don't know.  I am only hoping for the best here.  Bounty is investing in  lot of o/g rights in eastern Ohio.  I believe they are out of Texas.

Permalink Reply by daniel cohen on March 25, 2014 at 3:57pm

I know that when I offered to hire my own meter checker, I was specifically denied the permission to do so by CHK.

Dan

Permalink Reply by Darlene Newton on March 26, 2014 at 1:41pm

Well is that not suspicious!  I would do it any way!(if you could get away with it0

Permalink Reply by Darlene Newton on March 26, 2014 at 6:56am

Nobody, that is why we need the tax dollars to pay for Wardens .  We have no choice now that Gov Ridge Destroyed them with drilling!  People need to know that!  We lose tax dollars when Chesapeake takes our money in deductions and that could be a lot of Dollars for Pennsylvania!

Permalink Reply by Darlene Newton on March 26, 2014 at 7:00am

Plus as Citizens' I believe we need OUR people to watch these WELLS. With the gas  they are NOT telling us about   So I say with all that Money each County has start hiring people and make them give an oath!  I think that would be an excellent thing to do!!!!!!  JOBS for our kids !

Permalink Reply by william r rinehart on March 26, 2014 at 12:35pm

All,

A great subject matter, many people are being held hostage by old wells that are said to be producing (wink,wink) just waiting to sell the minaral rights to a deep well driller. The shallow well driller writes the numbers in the production report (fox gaurding the hen house). An example, called to have a line buried, they contracted to a digger outfit. Went to shut the pump off and the pump was not even working (really). Lets see, all I have to do is pay $48.00 a year and I maybe sitting on a million, what should I do?

Permalink Reply by daniel cohen on March 26, 2014 at 12:51pm

Our 'oversight' groups (DEP,EPA) clearly are not representing the landowner the way they should. As I understand it, Ohio (ODNR) oversight is much more rigorous and balanced- and from the exchanges that I have had on the Internet they (landowners) bless the ODNR and look at us in Penn. as being taken to the cleaners. As you have pointed out in your comments, this is the fox guarding the hen house. This we need to try to correct, as Darlene mentioned above, and Kathi,Booger & Brat are pointing to in their remarks as well.

There is current legislation in the pipeline working its way to a vote, and there are calls now from the Gov. and legislators to try to address the situation. I'm not holding my breath, since they are the ones responsible for the fox/hen house situation we find ourselves in, but hopefully something will come of it.

Dan

Permalink Reply by Darlene Newton on March 26, 2014 at 1:38pm

Dan I commend your positive-ness and I agree that our Reps from this County are fighting, they have to !  That is a lot of Money leaving those communities and they are going to see it hit here real soon !  Change has to happen and soon!

Permalink Reply by william r rinehart on March 26, 2014 at 2:09pm

Dan,

Not true no one checks to see if the numbers provided and are correct at ODNR, I know I called they just use what numbers are provided as fact. They do not audit those numbers provided.

Bill

 

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