Gulfport initially did not take any deductions from our royalties but in November they informed us that they were going to take out "post production costs that enhance the value of the marketable gas". They did so retroactively and stopped making royalty payments all together presumably to recover these deductions from earlier months. When payments finally resumed, initial deductions amounted to about 11% of the monthly royalty. But then in the payment for October's production, two of the laterals jumped to 22% while the other one remained at 11% of the royalty. Now in for the November payment, two laterals had deductions of 39% and the third was at 22% of the royalty. If they keep enhancing the value of my gas this way, my royalties may disappear entirely. Is anyone else seeing this from Gulfport?
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Make the call, you will be glad you did.
I just got an insider email on this topic. If you want to protect others from this theft you need a lawyer who believes in stopping the action and not revisiting the theft every few years like the lawyers around the country are planning on doing.
Ron Hale
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