Not paying for condensates

I understand that some companies are going to take the stand that unless specifically stated in the lease, they will not pay for condensates. If your lease says just oil and gas, they are going to refuse payment for the "condensate". Does anyone know anything about this. Also, I saw a post which had a letter for a demand for failure to pay royalties. Could someone please post another copy?

Thanks.

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0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on December 11, 2014 at 1:43pm

Adam,

    WV now requires the producers to turn in the annual volume of NGLs taken from each well.

http://www.dep.wv.gov/oil-and-gas/rr/Pages/default.aspx

Take a look at your well when the data comes in on NGLs and see if you are being shorted. If so it's lawyer time or write letters to state & federal government to find out what they can do to help you stop the theft. 

Permalink Reply by Adam Martin on December 11, 2014 at 2:46pm
Thanks Ron, this is good information. My concern is that these NGLs are never hitting the books so they will never be reported to WVDEP. The wells have been in production for over two wells and if that data was never collected, it would be hard to go back and piece together what was taken from the wells. Appreciate the info, it's definitely worth looking into.
0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on December 11, 2014 at 1:49pm

Adam,

    After the Justice Department is done with Chesapeake, the landowners will know what step to take next.

Permalink Reply by Adam Martin on December 11, 2014 at 2:55pm
Yeah, ready the DOJ is gonna run them thru the ringer. They and other producers, have taken liberties in every way they could. Royalty Owner are shaken down at lease time and they go even further to reduce the royalty payment by lowballing on the MCF price and charging massive amounts for deductions. I would hate for a company to go bankrupt and put many folks out of work because of the actions of a greedy few, but these companies need to stop stealing what isn't theirs!
Permalink Reply by Jeff Kerr on December 15, 2014 at 1:09pm

Yea Chesp paid us for oil and LGN BUT THEY SOLD IT TO RICE AND 2 CHECKS AND NO PAY FOR OIL OR LGN. FROM THEM. THINK IT TIME TO SEE A Attny. And yes my lease says all gas oil and constituents from well bore. is a 1.65 a mcf sound low or am I wrong that is what Rice paid for Aug. and Sept of 2014 

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on December 11, 2014 at 1:34pm

Jim,

   Below is the statement of leased products in the ALOV lease contracts, which is similar to your statement. Now the problem for ALOV folks is to have the producer follow the lease.

Form a class action suit with everyone who has a lease that states Gas and Oil only are leased, and have the courts make the O&G companies either pay a royalty on all products taken or leave those in the ground they don't want to pay for.

"Producing and gathering of all the oil, gas, casinghead gas, casinghead gasoline and all other

gases and their respective constituent vapors, liquid or gaseous hydrocarbons produced in association therewith other than as reserved unto Lessor here
in below (herein called “Lease Products”)."
Permalink Reply by Jim White on December 14, 2014 at 4:32am

Just found this in a proposed lease from Antero. Seems to cover all bases...?

For all purposes of this lease, references to oil and gas or either or both of them shall mean oil, or gas, or both and all substances which are constituents of or produced with oil or gas, whether similar or dissimilar or produced in a gaseous, liquid, or solid state. 

Permalink Reply by Adam Martin on December 14, 2014 at 5:18am
Yep, we also have a lease with Antero on acreage in Doddridge Co and their lease covers for everything that comes out of the ground. I will say that so far, they seem to be the most honest and upfront Operator that we've dealt with over the last 5 years...
Permalink Reply by Tim on December 12, 2014 at 12:49am
Adam,

Whose the operator?
Permalink Reply by Adam Martin on December 12, 2014 at 8:37am
It is EQT...
0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on December 12, 2014 at 4:50am

JIm,

      I made a blog out of the format to use when notifying your producer that they are not following the lease.

It's titled:   Notice of Delinquent Payment of Royalty per Lease Agreement

Let me know if there is a blank you don't understand, since I used blanks to block out some of the details of our well and personal info.

Chesapeake finally responded which surprised me, but they only tried to answer one of 8 or more issues. There is no way to respond when the producer is caught with his hand in the cookie jar.

Permalink Reply by Jim White on December 12, 2014 at 6:47am

Ron

How do I access that blog?

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