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Permalink Reply by 0ym9x5ag7ury2 on December 12, 2015 at 5:37pm

Dal,

   Funny you should ask. The ODNR uses the "Honor System" for producer reporting.

Per the Farm & Dairy 3rd Quarter 2015 ODNR reported volumes were record breaking.

The Landowners have been told the wells have been throttled back, so our Royalty Statements are probably evidence of more Law Breaking.

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Permalink Reply by searcherone on December 13, 2015 at 3:25am

ODNR numbers are producer reported NOT metered numbers.

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Permalink Reply by bo boboski on December 13, 2015 at 3:40am

ODNR needs to have someone checking every well's meters to keep them honest. BUT, that makes sense! They cant afford to hire any people for this? To protect the OWNERS of the minerals?

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Permalink Reply by 0ym9x5ag7ury2 on December 14, 2015 at 7:23am

I'm sure state officials know they could save more money than they will spend paying a group of Meter Readers. The Power companies have laid off a number of meter readers by using Digital Transmitting Residential Meters, so they would be available for retraining and going into the field to read O&G Meters.

You might know that the Ohio Tax Commissioner gets a copy of the ODNR reported volumes from the producer for AUDIT PURPOSES>

It's possible that the Ohio Tax Commissioner has been tipped off to the producer theft and will hire contractors to read the meters as part of an audit.He has evidence of theft by one O&G producer sent to him by a concerned citizen/landowner.

The other option is do nothing and run the states O&G business like a Coffee Fund, Take a cup, leave a quarter. Or Take what you want and pay nothing (as in NGLs in OHIO).

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Permalink Reply by 0ym9x5ag7ury2 on December 14, 2015 at 7:32am

Farm & Dairy Thursday Dec 10^th 2015

News Flash for all Ohio Landowners under production who have been told their wells have been “throttled back”:

Ohio’s Oil and Natural Gas Wells Reach New Highs In 3^rd Quarter

I’m betting your Royalty Statement well production is less than the numbers reported to the ODNR. Actually they always are. It doesn’t cost a royalty when reporting to the ODNR, only when reporting to the landowners on a Royalty Statement.

I know your royalty payments will show production has slowed.

Another interesting fact:

“Forty Seven wells reported no production as they are waiting on pipeline infrastructure”. Since when does Ohio Horizontal Well Oil travel by pipeline? The Tanker Trucks actually pick up the oil.

If you are on any of those 47 wells, notify the Ohio Tax Commissioner if you see Tanker Trucks at the well pads. He can contract inspectors to go out and audit the well meters and check to ensure the producers aren’t taking oil without paying a royalty.

They wouldn’t do that, would they?

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Permalink Reply by Jonathan H on December 14, 2015 at 8:47am

Ohio has traditionally accepted producer numbers for production, however now in some cases they are requiring documents to back it up because they are becoming aware of producer fraud. Call the Oil and Gas division of the ODNR and ask to speak with the well inspector in your area about issues like this as a first step. If he comes out to the site for an inspection (which he usually will if you ask for it) you can then do a recods request through their website for his report - along the way, ask for all associated documents for the well and see what turns up.

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