Delinquent First Production Payment Lemon's Wells (Stone Energy) Wetzel County, WV

I like to work with folks, but Stone Energy is very casual about making payments.  These Wells have been in production since August of 2013 - no Division Orders issued or payments made as of 9/4/2014.  Below is the letter that was sent:

 

Roger Cutright

Head of Land Division

Stone Energy

Morgantown Office

1300 Fort Pierpont Drive, Suite 201

Morgantown, WV  26508

Dear Mr. Cutright,

 

This is to notify Stone Energy that they have failed to make timely payment on the Lemon’s Wells in Wetzel County (API #103-02710, #103-02711, #103-02712, and #103-02713).  I consider this non-payment to be gross negligence, since these Wells have been in production since August of 2013 and there has been no Division Orders issued or payment made as of the date of this letter.

 

Sincerely

Cc:

 

Dave Welch, CEO


Stone Energy


Lafayette Office (Headquarters)


625 East Kaliste Saloom Rd.


Lafayette, LA  70508


 

Patrick Morrisey


Office of the WV Attorney General


State Capital Complex


Bldg. 1, Room E-26


Charleston, WV  25305

Rick Toothman, VP


Stone Energy


1300 Fort Pierpont Drive, Suite 201


Morgantown, WV  26508


 

James A. Martin, Jr.


Chief – Office of Oil and Gas


Department of Environmental Protection


601 57th Street SE


Charleston, WV  25304

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Replies to This Discussion

Permalink Reply by Sterling Williams on September 5, 2014 at 2:52am

I think there has been a mix up here. My question regarding a client and the proper way to recover unpaid royalties is not directly related to Forrest's original post regarding Stone Energy.  I was trying to get an elaboration on the proper way to go about getting a company to pay that isnt.

Sorry Forrest if I shanghai'ed your post a little. I logged on yesterday to ask a question and yours seemed very similar so i didnt want to make a second post asking the same question.

Mike MurphyPermalink Reply by Mike Murphy on September 5, 2014 at 3:35am

I deleted all my post on this matter because I not sure who I was answering you need to start your own discussion STERLING theres plenty of room on here to do so ....thanks for screwing up a good discussion and wasting my time trying to understand what was going on 

Permalink Reply by Sterling Williams on September 5, 2014 at 3:53am

There is no need to be hostile.  I misunderstood the point Forrest was trying to make and I already apologized for derailing his thread, which you obliviously know since you replied to my apology.  Not my fault you cant be troubled to read the name of the person you are posting to.

Permalink Reply by Forrest on September 5, 2014 at 4:07am
No problem Sterling, just getting back on point. Good luck collecting your money.
Permalink Reply by Traci Matulja on September 5, 2014 at 7:58am

Hi. Saw this post and was interested due to the fact that just found out that I own interest in producing wells out doolin on the lemon pad. I don't know the well numbers tho.  Problems occurred upon research with stone

 saying they had a signed lease with my fathers signature. The problem is

that the lease was dated 2 months after my father died. So if these are indeed the same wells there might be some problems

Permalink Reply by Forrest on September 5, 2014 at 10:54am

Traci - This well site is on Schupbach Rdg, which you do go out Doolin to get there.  And it is the Lemon's Pad so these are the wells.  The four above are to the NW and there are three going to the SE 103-02790, 103-02786,  103-02787.  The four wells going to the NW were issued a permit 9/30/2011 and 10/5/2011.  The three to the SE were issued permits 6/2012.  My understanding is that a list of mineral owners are filed with the DEP at the time the permit is submitted - so issues like you are having should have been resolved a long time ago.  Hope you are able to successfully resolve your issue with Stone and thanks for the information.

Permalink Reply by Traci Matulja on September 5, 2014 at 3:08pm

Your welcome. Thought maybe this might be the delay in the division order

Permalink Reply by DMTG on September 5, 2014 at 10:51am
I'm sorry to see negatives comments regarding Stone Energy. We are leased with them, and they have been nothing but helpful, courteous and responsive to all our concerns. It took more than a year to receive a division order for each of our wells. We were told by many that it would take 12-18 months to receive first royalty payments. They come now like clockwork.
I only wrote this to state that not everyone has issues with Stone. Good luck to all.
0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on September 5, 2014 at 3:55pm

DMTG,

     I'm sorry you were stolen from for so long and didn't mind. WV probably has a law they violated by not sending your Div Order within a given time period as in Ohio.

It sounds like Stone Energy was helpful, courteous and responsive while putting your money in their pockets.

You might spend some time looking at your state laws on oil & gas and some basic theft laws, and closely examine your royalty statement. Better yet send me a copy and I'll show you a few items you probably missed ( mrrxtech_yah@yahoo.com ).

People who accept what they are given without complaint is the reason the O&G companies are short changing us.

I'm getting $150 an acre regardless of how much oil, gas and NGLs Chesapeake takes. Should I be happy and not complain? I haven't been paid a dime for NGLs. And there's a lot more going on, on my royalty statement. No one is complaining, except for me, and I'm jumping up and down hoping to get every ones' attention of the theft in progress.

You might have some oil, gas or NGLs that are bad so you are not being paid. I know wells where the owners are accepting that excuse.

You won't be thought of as GREEDY if you make sure you are being paid what your lease calls for, it's good business. 

Let me give you an idea what good business is for CHK.  A quote from one of the Chesapeake VP from the newspaper :  " It's a good business practice not to pay landowners royalties, then only pay what the judge orders".

I'm sure with CHK setting the honesty bar below sea level, the other O&G producers will try some of their money making schemes. "Well, CHK is doing it!" "Why can't we?", I can hear that greedy ceo in the War Room declaring war on the landowners.

Consider this tough love, it's all fact.

Permalink Reply by rmc on September 6, 2014 at 12:35am
Really 12 to 18 months before first royality check and you didn't mind?
I call blonney I think you're plugging for the company we all know the companies watch this site.
If not maybe you wouldn't mind loaning me a couple hundred thousand for a year and a half for free
0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on September 5, 2014 at 3:29pm

Forrest,

      Looks like the WV Attorney General kept his authorization to go after a thief even though the company committing the crime deals in oil and gas.

If you live in Ohio send your theft complaints to the Director ODNR, he owns the laws that are used to control theft by oil and gas thugs. Same Ohio Revised Code, just a new twist to an old theft problem.

Hopefully WV will protect its citizens from the theft the O&G Companies have visited on every state in the Union they have drilled in due to payola. What else could cause an elected official to turn his/her head while the tax payers a being stolen from, along with all that tax money that could have been generated by a fair royalty being paid.

I wouldn't mind if our politicians put my tax money in a shoe box and took it home, at least I would have been paid for what is being taken from me. The way it is now, we all lose.

Permalink Reply by Forrest on September 6, 2014 at 1:32am

In Texas the statute is (Natural Resources Code - Sec. 91.402):

(a) The proceeds derived from the sale of oil or gas production from an oil or gas well located in this state must be paid to each payee by payor on or before 120 days after the end of the month of first sale of production from the well.

After the 120 days interest payment is required.

Payments might be a little different in TX - Stone has an office in Houston.

... and no surprise to me when I was told since WV does not have a law requiring payment of interest, there would be nothing paid.

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