Suggestions for establishing landowner royalty groups to protect against industry shortages and theft

Any thoughts on how to organize a landowner royalty union ?

Starting at the top, I would think that a web site would be necessary, part of it open to everyone to share information and network and part of it closed to the public for sharing more sensitive information.

The second layer might be teaching folks how to read and check royalty statements against the numbers reported to the state and then helping folks go through a process of giving your producer a reasonable and fair opportunity to redress a shortage.

And then a third part would be the legal arm, helping each other get in touch with the right representation to act on your behalf in and court proceeding.

I would think that the site we are using would be eager to get in on the act.

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Permalink Reply by David Allen Lilly on April 11, 2016 at 12:45am

I am right now reaching out to NARO concerning their CMM course's to verify if completion accomplishes my personal goals stated many times.

I hope it does.

Permalink Reply by Guy Smith on April 11, 2016 at 3:51am

David Allen Lilly - "Well said"   There seems to be NO real  help out there for a landowner who may be getting the short end of the stick.   If there is I cant find it.  I would be more than willing to give a % for the peace of mind knowing there was no foul play by the O&G company.  But maybe that's the problem everybody wants help but don't think they should have to pay for it? Is that the case? Or is the help just not out there? 

Permalink Reply by Barry D on April 11, 2016 at 4:34am

I have been following this thread; maybe I've missed it, but one question I have not seen answered is this:

What can NARO do tell help landowners, that feel they have been shortchanged in royalty payments, get paid properly?

Shortchanged meaning issues such as those highlighted by Ron Hale on this site.

So, let's say I've used the info provided by NARO and can now read and understand my royalty statement. I determine that I have been improperly paid. What will NARO do to help me correct the problem?

Permalink Reply by william Allen. Ladd on April 11, 2016 at 7:29am

My nephew is having meetings with Jackie Root who I believe is the head of NARO.  As I understand it, she is soon making a trip to Washington to lobby for landowner royalty interests. There are other issues concerning leases. Stay tuned for more information

Permalink Reply by rmc on April 11, 2016 at 10:31am
I believe Jackie root is the president of the pa chapter.
So the question that comes to my mind is if she is going to go to Washington to lobby is it safe to say that NARO doesn't hire any lobbing firms ?
Permalink Reply by Becky on April 11, 2016 at 8:14am

Hi Barry,

First,  All of the NARO Chapters are a part of NARO national (the larger organization).  NARO PA and NARO Appalachia are two separate Chapters.  NARO PA includes Pennsylvania.  NARO Appalachia includes:  Ohio, West Virginia, Kentucky and North Carolina.  Members can belong to more than one chapter.

Secondly, the mineral management course (CMM) does teach how to effectively communicate with the various organizations that the mineral owner may have issues with.  Also, as searcherone has said, NARO helps members network with various experts should individual efforts fail. 

Permalink Reply by Barry D on April 11, 2016 at 8:32am

Becky,

...and from what we have seen so far individual efforts will fail.

I was just curious if NARO was involved in helping landowners organize in order to pursue legal action against the companies. It doesn't appear that this is a part of it's focus, which is fine.

So, perhaps as David suggests there may be a need for a landowner group focused on the legal aspects of lease/royalty payment default. Just as there was a need during the leasing process.

I guess that puts the question out there again; how to begin this type of entity.

Of course I suppose each landowner could join in the suit Ron Hale posts about.

Permalink Reply by John Harrison on April 11, 2016 at 4:36am

David, I have been following your posts on this site and I agree with what you are proposing.  I am going to post the royalty stubs from a small property in Wyalusing, Bradford County, Pa. for roughly 2015.  The property is so small that the companies only send a check once a year.  The well is CHK and the companies are CHK 33.75%, Anadarko 33.75%, Statoil 16.25%, and Mitsui 16.25%.  The property has a 20% royalty lease on 0.160698 acres in a 902.310601 acre unit. I will include the monthly production from DEP. The monthly production on the Mitsui statements accurately reflect the numbers reported to DEP.

I am a member of NARO and have been to every presentation on reading royalty statements and the only company that helps with is Mitsui.  The other companies report numbers in such a way that the royalty owner cannot verify that they are being paid correctly.  This is just one of the issues that are difficult to understand in these statements and I encourage others to try to make sense of these statements.  

There are six statements received so far and I will post 3 with this post and the next 3 later.

Attachments:
Permalink Reply by John Harrison on April 11, 2016 at 4:38am

Here are the rest of the files.

Attachments:
Permalink Reply by bo boboski on April 11, 2016 at 8:41am

You are right, John. Those statements are almost useless to the landowner. By design,I suppose!

Permalink Reply by David Allen Lilly on April 11, 2016 at 10:37am

I want to sincerely thank you John for your time and effort. THIS is the very matter that I would think to be of the most importance to a royalty owner.

I would think a royalty owner association would have this at the very front of their organization.

I want to know and help others understand their royalty statements and to verify they are being paid their fair royalty.

So far I have seen very little from NARO in this direction.

I hope I am wrong, would any of you telling me how great an organization NARO is please tell me where on their web site to find help in that regard.

Permalink Reply by colt on April 11, 2016 at 4:07pm
Naro is a joke I went to barnsville meeting didn't learn nothing.bunch oh bluh bluh bluh..

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