After reviewing the issues regarding the Encino 1099s, I have questions about the significant deductions from royalties by Encino.  I have questions about whether Encino may be making deductions that are not permitted under the terms of the lease agreement I signed with Chesapeake. I sent an email to Encino,  but have not received a response. Others may want to check their leases. Has anyone else addressed this issue with Encino?

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The link above offers info concerning landowner questions. Click on the + symbols on right side of site. Hope this helps.....

I have talked to them numerous times and got the same pat answer "we're reviewing the leases" which they have been saying since last May.  There are a couple of lawsuits against them.  One by Kidder Law firm in Cadiz and the Krugliak Law firm in Canton. I called Kidder when I found out about their suit only to be told they are not adding anymore clients to that lawsuit as of three weeks ago.  I am going to be checking with Krugliak as see about what can be done.  

Kathryn, I'm familiar with the Kidder lawsuit; I was at a landowner meeting with them.  The suit hasn't been filed yet, but should be soon.  The reason they weren't taking any more clients is that they were overwhelmed with people wanting to sign up, and they didn't even advertise.  I know the law firm Bordas and Bordas were still recently taking on new clients, you might try them.  There certainly are more landowners wanting to sue than there are good attorneys to represent them.  What Encino is doing with deductions is egregious; they should be taken to court.  They are treating all landowners as if they all had the same bad lease.  Plus, you practically need a Rosetta Stone to decipher the royalty statements. I never thought I'd miss Chesapeake.


Chesapeake never left
Just changed names before going bankrupt

UPDATE - I addressed the issue with Encino. They reviewed the Lease and agreed that the deductions were not allowed under the terms. They paid back all past deductions and have not made deductions going forward. I was treated fairly and professionally. 

It took a long time for Encino to review our lease and pay us the past deductions not allowed under the SURE lease. They have not paid us the interest due for those improperly withheld deductions.

Congratulations James and Mike for making some progress with Encino. I sent 4 letters to Encino without a reply. I had a verbal agreement for an attorney to send a letter but now the attorney is not responding to me. The entire oil and gas industry is in turmoil with the new administration promising to put them out of business. From my perspective, we were lucky to be receiving some pretty good royalties that started in 2012.


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