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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When mine switched to Encino (gross, but calculated at wellhead I think unfortunately) the O&G unit rates seem ok , but looks like higher post production costs. CHK was about $1.25-$1.35 production costs. On the Total % check-I'm getting negative prices for NGL and my check was basically $0. No check at all last month. I have asked Encino 3 times about the negative rates on the Total check and they said they would pass it along to Total. I doubt if it goes anywhere. Are others having the same problems.

Encino; could that be Chesapeake under a new name, finding a way to take even more deductions? Who know what goes on behind the scenes when $ is involved!


Same here.  No Total check at all last month.  Previous month was only a few dollars after deductions, but I only have a few acres in an existing unit.  My lease was developed by KWGD group over in Canton, Oh. 

I recently signed a representation agreement with KWGD as it relates to compliance with the language in our lease agreement.  Waiting and hoping Encino will take a more honorable approach towards partnering with its landowners.  Only time will tell. 

Keeping my fingers crossed. 

I have over 80 acres in 3 wells and it sounds like the Total money is the same as yours-nothing. I think the Encino payment is lower then CHK, but I didn't see the actual deductions on the CHK check and nat. gas is pretty low right now. We have a lot of gas and NGL's with little oil. Seems like we took a hit with the new company-not to say CHK was paying us correctly either.

I hear ya.  As stated I have only a few acres, but have significantly more in a unit about to come on line within a month or so.  Thus my heightened interest and ongoing relationship with KWGD.  ChK was significantly lesssssss transparent than Encino.  Encino at least shows the deductions (Allowed or not.  Where not allowed it helps to build a case, hopefully).  Like youself and many others on this site,  I really just want to be dealt with in a fair manner. That's all. In the end, it may likely take a long lengthy legal suit or State of Ohio involvement (imagine that) to get us to that point. 


I can't help but wonder just how diligent the Encino's acquisition team drilled down (pun) into CHK lease compliance, as it ties back into revenues/expenses/income ?


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