Replies to This Discussion

Permalink Reply by Jackie on November 4, 2014 at 11:45am

I had just noticed the "Owner trans" on my checks from ECA too.  They are taking out over 1/10 of my royality.    I have never got a return call on my question about it. I plan to show my statement to NARO and the WVROA.  Then the legislators when they convene.  Please keep me informed what you learn.  I believe they must go by the WV Supreme Court which said in the Tawney vs Columbia case that no deductions can be taken out in those old leases that said "no costs".  We are in WV, not PA!  How can they not understand that?

Permalink Reply by Nancy Mosley on November 4, 2014 at 3:13pm

Here is what I was told: "ECA is paying the 1/8 royalty pursuant to WV Code section 22-6-8 ... That Code section provides that the owner of the oil and gas is to be paid 1/8 of the amount paid or allocated to the working interest owner. Typically the working interest owner shares in all charges associated with both production of the gas and transportation of the gas to market."

Below is the code section:

WV code 22-6-8-4-e

(e) To avoid the permit prohibition of subsection (d), the applicant may file with such application an affidavit which certifies that the affiant is authorized by the owner of the working interest in the well to state that it shall tender to the owner of the oil or gas in place not less than one eighth of the total amount paid to or received by or allowed to the owner of the working interest at the wellhead for the oil or gas so extracted, produced or marketed before deducting the amount to be paid to or set aside for the owner of the oil or gas in place, on all such oil or gas to be extracted, produced or marketed from the well. If such affidavit be filed with such application, then such application for permit shall be treated as if such lease or leases or other continuing contract or contracts comply with the provisions of this section.

Jackie, I think if I were you, I would call again and ask what "owner trans" means. Then write to Legal Department

Energy Corporation of America 501 56th Street Charleston WV 25304-2393

and ask your question. Be persistent. If you need the email address of the attorney let me know, but I think it is better to start with a formal letter.

I am considering what to do but it probably will include my attorney. The more ECA hears from us, the better.

What they are doing with these Owner Trans (I think short for "transport" or "transporation" ) deductions is not in keeping with the statute, and the court interpretations of similar things.

I wish I had been more persistent last year when they first started these deductions.

Permalink Reply by Jackie on November 5, 2014 at 5:45am

Thanks, Nancy.   I agree with you and I will be persistent.  I truly believe they will end up having to pay us back for all the deductions they have taken.

Permalink Reply by Todd on February 14, 2015 at 11:35am

Have you all gotten your issues resolved with ECA?

Thanks,

Todd

Permalink Reply by Nancy Mosley on February 14, 2015 at 1:30pm

Not yet. Waiting on advice from attorney. Evidently the law is not perfectly clear on post production costs for newer 1/8 royalty wells on old flat rate leases. The old leases did not say "no cost" and the statute did not say "no cost" so the companies can decide how they want to interpret it. Then perhaps the royalty owner  can decide to sue or something. I wrote to my representative and senators. Only heard from Woody Ireland who said the legislature would be looking into a lot of things this session.

They need to hear from as many of us as possible, both the companies doing this, and the legislators and senators.

Permalink Reply by Jackie on February 14, 2015 at 2:13pm

ECA has not answered my letter that I sent Nov. 5.  A Mr. Adkins did call me, but really gave me no answer.  He did say he thought the trans cost was being taken out because of the Spotloe Case.  So I asked him to send me just the part that said that, which he has not done.  My leases were done in 1985 and state "no cost". Also, I thought the recent class actions here in WV said if the leases don't say they can take costs, then they can't.

I gave Woody Ireland a copy of my statement in which ECA took 44% out for the trans cost.  He was busy at the time working on the Pooling bill, which has now been introduced. 

Permalink Reply by Nancy Mosley on February 14, 2015 at 3:30pm

Did you get a payment in the Energy Corporation of America class action settlement, Spotloe v. Eastern American Energy Corporation? We have a different well (not a flat rate) with Energy Corporation that was involved in that class action, and by not opting out we implicitly agreed to have transportation costs taken out (sort of fine print). I don't think there is any way around that. However, we have those 2 other wells on a flat rate lease that was not involved in the Spotloe case.

He used the argument i posted above about the flat rate provision in WV code 22-6-8-4-e

Robert Adkins is their corporate attorney. He is good at not answering questions unless you make a pest of yourself.

Permalink Reply by Jackie on February 14, 2015 at 4:35pm

Looks like I did accept a check from Eastern American for that lawsuit.  Odd thing they are taking out the trans cost on one of my leases and not on the other.  Both leases were done in 1985 at 1/8 and no costs.  Mr Adkins said he didn't know why that is happening.  That he needed to research that. Maybe I better stop asking or they could start taking from both leases. Just doesn't seem right though.

Nancy, you have been very helpful!  Thank you.  And good luck with your 2 wells.

Permalink Reply by Nancy Mosley on February 14, 2015 at 5:06pm

Were both on that Spotloe suit? There were many pages of wells involved. If you still have your documentation that came with the suit you can look through it and see.

If you don't, I can probably attach it here on the forum. I have it scanned, 33 pages. The wells are listed by their Energy Corporation well number, not the API. I think it is the number they use on the payment statements every month.

Permalink Reply by Jackie on February 16, 2015 at 7:18am

I only have a check stub from the Eastern lawsuit showing what my payment was.  I don't even remember getting much paperwork. (Unlike the Dominion suit which gave a choice in accepting a higher amount in exchange for adding cost, which I did not do.)

If it is possible for you to attach pages that would show me what I must have signed that would be great.  Or I could just give you my well numbers to see if they paid me on both of my wells.  I know I never received a list of wells.

Permalink Reply by Nancy Mosley on February 16, 2015 at 2:56pm

Can't figure how to reply to your post from today.Yes I noticed that they didn't have the choice that Dominion had.

I hope the attached file works. 33 pages. The list of wells starts page 12.

Permalink Reply by Nancy Mosley on February 16, 2015 at 3:00pm

Can't figure how to reply to your post from today.Yes I noticed that they didn't have the choice that Dominion had.

I tried to upload the document and GMS says it is too large a file. If you can find the well numbers I am glad to look it up; or if you want to Friend me maybe larger files can be exchanged that way.

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