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Permalink Reply by Mary on December 18, 2013 at 10:37am

Since no response, I'll elaborate a bit more to see if anyone can help.

We received our most recent royalty check from Chevron and they gave us additional money for each well and it's entitled 'Voluntary Gas Valve Adjustment'. Any thoughts?

Mary

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Permalink Reply by Jim Litwinowicz on December 18, 2013 at 12:49pm

That means they cut production.  Could be due to low gas prices, pipeline capacity, other wells coming online, declining pressure. Probably more then I thought of.

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Permalink Reply by Trapper on December 18, 2013 at 2:52pm

Additional $ for a cut in production?

I was thinking maybe it was just a nice way of saying , "we screwed up and underpayed you for a while and now want to make it up to you (voluntarily) without really admitting we jipped you"..........

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Permalink Reply by Jim Litwinowicz on December 18, 2013 at 3:33pm

oops, read it wrong. I thought they cut pay , not additional. 

They may have been under restricted flow previously and opened up a bit as market permitted. Prices have gone up and so has demand due to the cold weather so maybe they sold more.  Does the statement have MCFs sold? Can you compare to previous royalty checks?

Or, like you said, maybe they made a payment then realized they were wrong and tried to correct it without admitting the error.

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Permalink Reply by Philip Brutz on December 18, 2013 at 3:05pm

Have you asked Chevron?

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Permalink Reply by Mary on December 18, 2013 at 3:39pm

Thanks for the replies. We've not yet contact Chevron as I thought I'd run it past you guys to get some sort of idea before asking them. Our wells were shut down for a few weeks so our checks were only a partial, I'm assuming.

Again, thanks!

Mary

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