Anyone collecting royalties on a Talisman lease - pipeline transport charge question

Is there anyone currently receiving royalties from Talisman that might be able to answer my question.

I am not sure of the correct term but what I want to know is does Talisman subtract a fee/charge to transport the gas through the pipeline from your royalty check?    I know all leases are not the same but I was warned this may be their practice, has anyone encountered this with them?  Thank you.

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0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on May 9, 2016 at 9:56am

Frank,

    Have you noticed that you insult me then side with me?  Take a stand Frank.

Permalink Reply by Jesse V. on May 5, 2016 at 1:39am

Ron, I understand your skepticism and given what most companies do to there royalty owners it is well founded. However, Talisman has been one of the most top notch operators here in the north east region of the Marcellus. They were not new to the area either when the Marcellus first broke. Talisman still operates a number of TBR wells in NY but obviously has not had activity there in some time.

Talisman like most companies that invested heavily in the Marcellus lost big time when the down turn hit. As of a year ago the buyout by Repsol became official. I suspect a name change will come eventually but in my experience the way they operate has not changed.

Here's a little story to pass along and you can believe whatever you'd like. My neighbor and I are both in the same Talisman drilled and operated well unit. I was leased with Talisman he was leased with Chesapeake. Chesapeake, StatOil, Matsui and Anadarko held their interest in the lease and paid my neighbor his royalties with deductions despite his lease having the same royalty clause almost word for word as my own. 2 or 3 month ago Talisman acquired his Chesapeake lease and low and behold his first Talisman payment came in without deductions. JMHO, but Talisman and now Repsol appear to be doing things right and avoiding problems rather than creating them. Yes, you can put any clause in your lease but those words are only as good as the company that owns that lease.   

Permalink Reply by Frank Walker on May 5, 2016 at 2:57am

Jesse

My best knowledge is that Repsol (formerly Talisman of Canada) honors their leases.  They do not even take deductions when its a boilerplate lease, no less a well-done lease which calls for no deductions.  Repsol is also a good corporate citizen here where I live in NEPA.  They contribute to local causes and run a clean operation.  It's a good company.

Permalink Reply by Leo Volz on May 9, 2016 at 7:30am

Barbara,

My lease is with Talisman, but my property sits in a unit operated by Chesapeake.  I receive checks from three companies:
   Talisman - my actual lease
   Chesapeake - the unit operator
   Statoil - Invested in Chesapeake's holdings in my county in PA.
My lease has a no deductions clause, and Talisman has always seemed to deal squarely.  Chesapeake hammers us with production fees.  Their explanation is that they are not bound by the terms of my lease and can, therefore, take whatever they deem appropriate (including drying charges for gas that comes out of the well marketably dry).   Statoil shows no deductions, but consistently shows our price per unit substantially below market value.  They are playing serious games with how and to whom they wholesale our gas, and their "non-deductions" are hidden in their lower per unit values.

Hope this helps.

Leo

Permalink Reply by Barbara on May 9, 2016 at 10:11am

Thank you Leo this helps a lot.  In fact, all the comments I received have been great.

Permalink Reply by Toytown on May 9, 2016 at 2:31pm
Barbara, where is your land located. It seems Talisman is concentrating on the Leraysville area and an area out near the Bradford/Tioga County border.
0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on May 10, 2016 at 10:25am

LEO,

      Take a look at the Hope Christian Fellowship vs Chesapeake Complaint which is on this site.

There's a spreadsheet from Chesapeake Energy's own Revenue Department that fell into my hands, which shows how they come up with their deductions for our No Deduction Leases.

Read the section on how Buck Well 1H has been stolen from, I'm sure this is uniform across the state if not the Country.

Chesapeake likes to distribute the funds when multiple companies are involved such as Total E&P who is paying their 25% production ownership for Buck Well 1H to Chesapeake.

When Chesapeake pays us the Total E&P money is "absorbed" by Chesapeake which prevents Landowners from comparing Total's 25% Royalty payment to Chesapeake's 75% Royalty Payment. The 0 to 2% Royalty we have been paid has been determined to be an OVERPAYMENT so some landowners are receiving No Royalty Payment.

If Chesapeake is paying you, and ignoring your lease, then contact the lawyer on the last page of the Hope Christian Fellowship to determine how you can put together a lawsuit or possibly be included in the Hope Christian Fellowship if it is approved as a Class Action.

Ohio's RICO Law applies to your case as it does ours. Ohio Laws don't favor thieves when they are applied as written.

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on May 9, 2016 at 10:26am

Here are the Natural Gas Liquids for the first quarter reported by Repsol.

You might want to find out where those NGLs came from, or would that constitute being ungrateful & greedy?

Oational data Q1 2015 Q4 2015 Q1 2016 % Change 
Q1 16/Q1 15
LIQUIDS PRODUCTION (Thousand bbl/d) 132 246 255 92.8
 
GAS PRODUCTION (*) (Million scf/d) 1,249 2,533 2,579 106.5
Permalink Reply by Frank Walker on May 9, 2016 at 12:04pm

Yawn

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on May 10, 2016 at 3:27am

Now Frank has my curiosity on the County your wells are in.

I'm betting I can prove there is more than Natural Gas under your properties.

Landowners rarely make it a point to insult other landowners who are trying to ensure others are being treated fairly. 

drillers and landmen can't resist going after anyone who knows the truth about the US domestic oil & gas companies and their theft. 

Frank, my Dad would have called you a Punk, but I won't name call even if you are.

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on May 10, 2016 at 10:37am

Guernsey County Landowners should be seeing Oil and Natural Gas on their Royalty Statements per the ODNR Quarterly Production Reports link below. All wells in Guernsey County are producing oil and natural gas. The ODNR doesn't report NGLs so some producers have been taking them free.

http://oilandgas.ohiodnr.gov/production

When I find the EIA Pipeline Map for Guernsey County we will know if Natural Gas Liquids are being piped to Scio for processing. IF NGLs are piped through Guernsey County, you should have NGLs on your Royalty Statement as well.

PA Landowners need to do some research to determine if they are actually in the Dry Gas Region which would be those counties to the East. The Western Counties are in the Wet Gas Region and should have oil, gas and Natural Gas Liqiuds.

Go to your producers Quarterly Reports to determine if the producer is taking NGLs & Oil from your area. 

I know NGLs are being taken in Western PA since I saw it on a Range Resources Qtly Report.

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