Is anybody noticing the deductions by Encinco. In addition to some taxes they are now deducting for “production costs”. When asked she said all leases are being reviewed and after that, the deductions would be refunded if they weren’t to deduct them. Said it would take months before they are done. Mine amounted to almost 1/3 of gross. 

Wonder if this is their way of getting cash and then will pay back months later. I didn’t notice it until now as they didn’t get the online owner info working until now. Waiting for June’s report but sounds like they are going to keep up the deductions until they finish review of all leases.

Is there anything we can do

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Hi D.C.,

It took many weeks of phone calls directly to James Lebeck, Encino's Chief Legal Officer, to get reimbursed for the amounts they wrongfully withheld from our royalty checks and that was AFTER they conceded that our lease was a gross lease and not a net one.  We are in discussions with a Houston firm who conducts oil and gas royalty audits.  Under Ohio law they can go back 4 years.  One thing the audit firm pointed out was that it looks like Encino is only paying for around 20 days a month instead of 30 or 31.  I am afraid that they are all crooks -- from CHK to Encino.

As soon as Encino took over, our royalty checks started dropping. The last check was about a tenth of the average we were getting from Chesapeake. WTF is going on? I understand the price of natural gas is low and apparently Encino is taking out more deductions, but something just doesn't seem right, our royalty checks are down to practically nothing! Is it worth it to call them? It sound like their service rep's are just spouting bs.


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