Diversified Gas & Oil Information

Anyone have information about or experience with Diversified Gas & Oil and how they operate?   I have read a recent article about their purchasing conventional wells from Alliance Petroleum and CNX Resources in Ohio, WV and Pennsylvania.  As a CNX landowner with wells in PA I have concerns.   Do they continue to operate these wells?   How do they pay royalties?  Do they spend money to maintain the wells?  How is the lease designed for deep gas rights?   Are they fair to work with as a landowner?   Do they have regional offices in Central PA?   Anyone with insights and comments is appreciated.  Thank you!!

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Permalink Reply by Kathi Albertson on February 17, 2018 at 2:03pm

Because my Atlas well has been shut-in for more than a year, I sent an email to titan@ownerrelationssupport.com, an address that appeared on the bottom of my substitute 1099 for royalties from the last 4 months of 2016. I was surprised to get a reply from Tori Solomon, the customer relations person at Diversified Owner/Relations Support telling me that Diversified purchased my well along with all Titan assets in Ohio and Pennsylvania in July of 2017. This person seems helpful and responds quickly to questions. HOWEVER, when I looked at my well information on the ODNR Data Base, I was surprised to read that the well is owned by M & R Investments Ohio with a Birmingham, Alalbama address. Perhaps they own Diversified. I am surprised that well owners have not been notified of the change of ownership.

Permalink Reply by farmgas on February 18, 2018 at 3:24am

Kathi - are you saying you were never notified by DGO of their purchase of Atlas wells, and in particular,  your well?  Was your well shut-in after the sale?  Were you receiving royalties prior to the sale?   Has maintenance of your well continued after the sale?

There have to be a lot of other folks out there with this experience.  Please share how this transfer has affected your well maintenance and continuation of receiving gas royalties!!

Permalink Reply by Kathi Albertson on February 18, 2018 at 5:58am

I was not notified of the sale of my well which is interesting since my lease states that my written permission is required before a sale can be made. The well was shut-in approximately 6 months before the sale. The last royalties were paid before the well was shut-in but I didn’t cash those checks because I object to the fact that transportation costs were deducted which were prohibited in the lease. As for maintenance, the chart that should show production at the separator has not been changed for months with the blue and red flat lines getting darker and darker. Furthermore, the well head has been inaccessible by vehicle for months since several large trees fell over the road during a storm last Spring. Since that road was created as a well access road and leads to nothing else, we have not removed the trees believing that it was an Atlas responsibility.

i am interested in hearing what others have to say about the sale of the wells. I know that I need to talk to an attorney but am wondering if the fact that since all of the Atlas assets were sold as a block negates the requirement that I give written permission for my well to be sold. Also, if I do get the shut-in payment required by by lease, will cashing it indicate that I accept the other violations of the lease? Sometimes I wish that I had never signed a lease to begin with, although we worked hard to make it a good one, the stipulations of which have been ignored by the operators.

Permalink Reply by Kathi Albertson on March 2, 2018 at 4:34pm

I had a reason to check my lease for this well at the Recorders office today and found that the transfer that Diversified said occurred in July of 2017 has yet to be recorded.

Permalink Reply by Spike's Kin on March 30, 2018 at 10:04am
If the prior operator missed a shut-in payment, and there's been no production for a year or more, could be there's an opportunity to wriggle out of your lease. There's typically some percentage of wells that are disputed in any bulk acquisition like this, and the new operator may rather write it off or charge it back and move on rather than fight you once presented with hard facts. Time for an initial consultation with an attorney.
Permalink Reply by Kathi Albertson on March 30, 2018 at 1:53pm

First of all, I have to say that the response that I have received from Tori Solomon at owner relations support at Diversified has been absolutely great. And this is coming from someone that has become very skeptical of the G & O industry. Within a week or two of asking for my delayed rental payment, I had it. Then with the agreement of my attorney, I emailed Tori stating that I could only cash the check after I received a notice asking for my consent for the well to have been sold from Atlas/Titan to Diversified as required by our lease. I included, as a requirement for my consent, that a typo in the original lease be corrected. I believe that it took a little cage rattling on Tori’s part but I have received an email from a person that seems to be the head of the land department at the local office of Diversified, stating that the typo is being corrected and the revised lease will be sent for my signature soon, along with his apologies for the oversight in asking for my consent for for the sale of the well. I might be naive, but with Tori as my advocate, Diversified is a company that I think that I can work with and feel relieved to be able to say so since I don’t think that I have much choice in the matter.

Permalink Reply by farmgas on April 2, 2018 at 12:32am

Kathi - is there a regional or local office for your contact or did you have to contact their Birmingham, Alabama office?  Wondering about local contacts for PA....

Permalink Reply by Kathi Albertson on April 2, 2018 at 1:34pm

My contact is Tori whose email is diversified@ownerrelationssupport.com . She might be in Birmingham but she knows how to get the attention of the right people where ever they are. My last correspondence came from a land man in New Philadelphia, Ohio.

Permalink Reply by Tusc-county-man on April 4, 2018 at 9:28am

who in New Phila?

Permalink Reply by Kathi Albertson on April 5, 2018 at 6:34am

Dan Rexroad but I highly recommend going through Tori Solomon to get to him. She knows how to get things done.

Permalink Reply by BW_Appalachia on April 4, 2018 at 3:47am

M&R Investments is a subsidiary of Diversified. Diversified is HQ'd in Birmingham, AL.

Permalink Reply by Spike's Kin on April 4, 2018 at 8:37am
Atlas is/was a coal company, wasn't it? I'm wondering if they (either Atlas or Diversified) could afford to be so sloppy to let leases lapse in instances where they're not holding deep O&G rights by production-- say if these were CBM (coal bed methane) wells.

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