why are we not pushing for more?

I'm hopeful that I will be able to sign a new lease as mine is set to expire in January of 2015. They have not touched my property located in Tyler county since they signed.

The last time I was ignorant to all of this. I still have barely scratched the surface but at least I can spell Marcellus and have heard about the Utica this time. I see the bonuses being paid and royalty amounts being paid here fluctuated a lot. I see people talking about how little some of them are making and they are in good areas. I suspect the companies are making quite a bit more then us. I understand they do the drilling and have the investment in exploration but we own the land. I wish I could calculate the appx. Amount they will profit on the well and try to figure out what the land owner share should be. I know we can't put a exact number but we should be able to figure out a appx. Percent of royalties which reflects that appx. Amount we should make.

Any ideas on the appx. Profit these companies will make in good and or bad areas. Any thought would be greatly appreciated.

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0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on August 13, 2014 at 2:22pm

Jason,

    Check your lease for a statement that says the company you leased with has "First Right Of Refusal".

That means you have to give them a chance to lease again for the Secondary Term of the Lease. If they are broke you are free & clear to lease to someone else.

You can figure out the amount you are owed when a well is producing.

The last document you get before you recieve a royalty is a Division Order (watch for attachments that unethical producers use to change your lease), it has a decimal fraction that represents your interest in the well. You are supposed to take a look at the number and verify it is right.

Assume you have 10 acres out of a 500 acre unit, and your royalty is 20%. Your ownership decimal fraction is:  10/500 x .2 = .02 x .2 = .004  This is your share of the well.

You can verify what your producer says he took from the well by comparing the Oil, and Natural Gas with the ODNR figures for each months royalty payment after the quarter ends (plus a few more months to allow for the update).

No one is tracking the Natural Gas Liquids except the producer. My producer thinks he getting away free & clear with all the NGLs but he isn't. If you multiply your Natural Gas MCF by 2 you will get the approximate gallons of NGLs taken from the well. If you find you've been stolen from you can report the theft to the Ohio Attorney Generals Office and notify the Governor as I did.

I agree that too many people are happy with what they are getting, when they should be getting rich, and happy! We are staying poor and pissed at the Buck 1H Well.

I have documented evidence that my producer charged us $8,000 at the Buck Well 1H to take $85,000 in NGLs. They are doing to us in Ohio what they did to the landowners in PA.

When you start getting royalties, look me up or ask around and someone will walk you through the above to check on your producer. Some are bigger thieves than others, but they all have sticky fingers to put it politely.

Permalink Reply by jason irvine on August 14, 2014 at 2:25am
Ron thank you so much for the info. That is one of my concerns but I was hoping there is a way to calculate how much the producer will make and negotiate a royalty percentage that will give us a fair amount of the profits. We know they are making 300 to 400 % profits. We should be getting a nice chunk of that. If I could calculate that appx. Number then maybe I could figure out how much I should make.

We are in a wet area so I also have concern that we will not get paid for the most valuable product coming to the surface. I wish there was a way to calculate to total the well will appx profit. I know there are a lot of variables but there has to be a way to get an idea of how much
0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on August 15, 2014 at 2:44pm

Everyone in the state of Ohio who has given their producer the authority to produce and sell the oil, gas, and NGLs from their well can expect that producer to follow the laws of Ohio by fairly discharging their duties by selling the product at a fair open market price, then pay you the landowner the royalty agreed upon. Any company that keeps your share from you regardless of the means is conducting Theft By Deception which is a basic law of Ohio.

I've run into a Bump In The Road but I won't give up the fight by seeking a lawyer to resolve my issue between myself and my producer. That's a sell out. The producer is engaged in theft and will eventually steal Billions in NGLs from Ohio and the smaller producers will follow suit.

Years down the road the producer will go to court and pay millions to the Ohio landowners after stealing Billions in NGLs.

Notice that their crime has always paid so they have been crushing landowners in every state they have been in.

I believe the laws of Ohio will be enforced it will take some help from people at the top but it's worth a try. Too many people have dreams riding on their producer and that their producer will be fair. I hope we can make that happen. 

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on August 15, 2014 at 3:15pm

Jason,

       The way it works is you get your decimal fraction of the sale of the well products. If the producer follows the laws, you get exactly what is in the division order times the wells total sales.

If the producer is not following the laws, the state will have to take action.

If your producer is not following your lease, you will have to notify the company that they are not following the lease. It sounds stupid but, producers don't follow leases until you tell them to. It's like you signing a contract knowing you aren't going to follow it. That's the oil and gas industry in a nut shell. 

After you tell them that they are not following the lease and they ignore you, then it's law suit time. It's best to find people with like leases and form a class action suit. I would think any lawyer who is hired will advertise so a large group can be formed.

Permalink Reply by Dexter Green on August 15, 2014 at 4:14pm

"It's best to find people with like leases and form a class action suit."

Getting a class certified is in it of itself a huge hurdle.  You're making all of this sound a lot easier than it is.

Permalink Reply by Puzzled on August 14, 2014 at 2:33am

There is some information on this forum on how to roughly approximate what your acreage will produce in its lifetime.

You could use this information to determine if you are getting a fair share of the profits from your minerals

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on August 15, 2014 at 2:59pm

The number I saw was $24,000 per acre lifetime. I know that's too low, but after receiving my first royalty check, the well will be dry before I break $5,000. Can you say "Serious theft is in progress"?

I knew you could.

Someone has ramped up their theft, after making several millionaires, similar to that kid at the carnival that carries the large stuffed animal to show that you can win at the games, when actually you can't (that kid works for the carival by the way), the producer has taken the gloves off and is doing some serious damage to the landowners of Ohio. Make sure you are sitting down when you get your first royalty check.   $57 per acre is laughable, until you realize the joke is on you.

Permalink Reply by bungalow_steve on August 14, 2014 at 4:13am

The annual report contains their profit statements.

Permalink Reply by Brian Werner on August 14, 2014 at 5:10am

Don't count on recieving a Declaration of Unitization (Division Order), let alone before production or being asked to sign it unless that is in your lease. The leases  that I have only say that a Declaration of Unitization must be filed at the county courthouse. I have two horizontal wells in production under my property in Carroll Cty, Ohio and have been notified of absolutely nothing. I rumaged through the courthouse records and found that the Declaration for the first well was filed about 5 months after production started and about three months after the first royalties were paid. The second well went into production in March of this year and I again was notified of absolutely nothing. The big difference is that it has now been about 5 months after production started and no royalties have been paid.

 

My lease requires royalties on gas to be paid by the 30th of the month following the month of sale. Is there any way to find out when the production was sold? I find it hard to believe that they are sitting on the oil and gas for 4-5 months but how can one find that out?

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on August 15, 2014 at 2:50pm

Brian,

      Something is seriously wrong if you own the deed to your property (surface and minerals) and have somehow been bypassed.

I would guess someone else has leased your minerals. We all have access to the Carroll County Electronic Records, have you looked to see who leased your property?

Do you need some help looking into this issue?

.

Permalink Reply by Brian Werner on August 22, 2014 at 10:34am

Ron:

I do own all of the surface and mineral rights. The Oil and gas lease is an old Clinton lease currently with Enervest. Enervest is paying royalties per that lease for two vertical wells and the Cairn 5H horizontal well. The new well is the Morsheiser 5H operated by Chesapeake. I contacted Enervest and they said they had a joint development agreement with Chesapeake and that anything to do with that well was between me and Chesapeake. My property is spelled out on the well permit for the Morsheiser well. There is no language in the old lease for non-payment, so I'm wondering if the lease can be declated null and void since they hav likely broken the terms?

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on August 25, 2014 at 4:07am

Brian,

     Do an online search for Ohio Revised Code 1509 (Lawriter is the best website to look at) which deals with oil and gas.

It's a long drawn out set of laws which includes forced pooling, division order, notification to landowners prior to drilling, reports to landowners on production.

I saw 12.5% mentioned as a minimum royalty as well. Take notes since there is so much information you won't be able to find the important information you want to use.

Find the laws that your producer has failed to follow while going through the process of drilling and production. Notify the Director Ohio Dept Of Natural Resources since he enforces the laws when an oil & gas company fails to follow them.

As with anyone who has a problem, if you need help let me know, I'm good with pen & paper.    mrrxtech_yah@yahoo.com

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