Replies to This Discussion

Permalink Reply by Philip Thackray on August 12, 2015 at 7:48am

Hello Ken,

I'm in the XTO Marburger Dairy B unit in Butler County, PA Forward Township which went into production in October 2013.  If your production started in May/June you should see a royalty check about the 25 th of this month (August).  At least at the Marburger Dairy B unit, XTO pays royalties a little less than 2 months after the production month.  For example, July 2015 production royalty will be paid about September 25, 2015.  I don't think our lease specified the delay between production and pay out.  The Clouse unit could operated differently.

Are you signed up with investor relations at XTOEnergy.com?  The royalty details for each XTO lease holder are available there.  If you are getting your check by mail, the details will be included in your mailing.  My royalties are directly deposited at PNC so I have to check at investor relations for the details.

With gas and oil commodity prices in the dust bin, be prepared for shockingly high deductions.

Phil

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Permalink Reply by Ken A on August 12, 2015 at 9:31am

Hi Phil,

Thanks for the info.  I tried to get set up on the XTO website, but the only recent check I had from them was for a delay rental payment and it didn't seem to want that. I emailed them my info and questioned when I will begin receiving my royalty payments so I'll see what I get back from them.

As for deductions, my agreement states that XTO can't make any deductions from me for any production/transportation/processing costs, BUT that third parties can.  So, am I to assume a "third party" is involved with the production, transportation and processing?  Again, I assumed (and my bad on that) that the pipeline and the processing facility were owned by XTO.

Thanks for the information!

Ken

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Permalink Reply by Philip Thackray on August 12, 2015 at 10:05am

Ken,

The gathering lines from your pad to the Hicks Road processing plant are technically owned by Mountain Gathering which was?/is? a division of XTO.  So is that a "third" party?  I'm not sure if the plant itself is owned by Mountain Gathering or XTO itself.  There may be some "true" third party charges for products that leave the plant.  Your first check should be interesting!

I got to tour the plant when it first went into operation.  It is like space dock for the Star Ship Enterprise!

Phil

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Permalink Reply by Ken A on August 12, 2015 at 10:35am

Phil,

Very interesting.  I Googled your info and it looks like Mountain Gathering is a subsidiary of XTO.  I also saw an article about XTO opening their Hicks Road processing plant in Renfrew.  So now I guess the question is are these subsidiaries considered third parties?  Yes it will be interesting to see how all of this plays out.  XTO has been a great company to work with up to this point. (fingers crossed)

I can't even imagine what that facility must look like other than big tanks and pipes.

Ken

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Permalink Reply by Ken A on August 12, 2015 at 1:31pm

Just received this from XTO regarding my email inquiry:

"The first date of sale for the Clouse Unit 01H, was on 06-02-15.
Please allow 6-9 months from this date to receive the division order and
royalties."

Rather disappointing.  Thought I'd finally see something sooner than that.

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Permalink Reply by Philip Thackray on August 12, 2015 at 2:20pm

Ken,

I had my division orders before the well went into production.  Clearly, given the low commodity prices they are stretching new customers WAY out in time.

At least monthly production numbers are now published.  These numbers are available about 2 months after the production month.  Only total well head gas (methane + NGL) and condensate are listed.  You should be able to check on each well's performance at the end of this month.

See production by operator here:

https://www.paoilandgasreporting.state.pa.us/publicreports/Modules/...

Note, Internet Explorer may not work on this feature.  I use Chrome.

Phil

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Permalink Reply by Ken A on August 12, 2015 at 2:33pm

Yes, I've checked the state site out.  Very buggy and my Internet Explorer will NOT work with it - works with Chrome.

Ken

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Permalink Reply by Philip Thackray on August 12, 2015 at 3:59pm

Ken,

Good article.

I had read about shady things that the E&P company can do with the division orders.

Of course, In Pennsylvania, actually calculating the division order "decimal number" is straightforward.

Phil

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