Uderstanding your royalty statements, empowering landowners against royalty theft or mistakes

We are chugging along towards completion of the well that includes a portion of our property. The last word is completion of the connecting pipeline is in June and it looks like they are well moving to that goal. They have been working 24 hours a day setting up the pad for production and what I assume is the flowback portion of the procedure.

My attention will soon turn towards a very daunting task of verifying my royalty statements against lease terms and fair market pricing.

I have been told and very much believe that the statements will be nearly impossible to read and understand. Fair enough, but, I am not easily daunted by complications from difficult situations. I fully intend to hire an accounting firm specializing in oil and gas royalties to verify everything and then I will hold the producer accountable for any discrepancies.

I am tired of hearing about landowners being abused.

This is a serious matter, folks who have never had money think money solves problems but it doesn't, it creates a whole new set of complications. And so it is with your royalties.

This site could do a tremendous service to its participants if instead of bombarding us with buyers of mineral rights and royalties it would offer solutions to understanding your royalty statements and aiding in the educating of landowners.

This is my new endeavor, soon enough we will begin to receive royalties and I fully intend to stick around, sharing information with others, learning from some and helping others, extracting the falsehoods and emphasizing the truths.

So, does anyone have any useful information for us on how they started down the path of deciphering royalty statements ? My first guess is the statements are overloaded with numbers that don't correspond to other numbers, confusing and complicating matters needlessly.

I appreciate anyone trying to help.

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Permalink Reply by Mark Hrutkay on March 25, 2016 at 10:33am

Very well said......

"Unless one is well versed in oil and gas law, its nuances and subtleties, and licensed to practice law (with experience to boot), ordinary leaseholders have no business in challenging these people in court solo"

Permalink Reply by bo boboski on March 25, 2016 at 9:35am

I like your way of thinking. Screw the lawyers,go to court on your own behalf. Sorry to say that it just doesn't work that way in our society. hopefully,I'm wrong,but good luck.

Permalink Reply by INVICTUS on March 25, 2016 at 9:53am

Guys, I am extremely sympathetic to your anger and frustration.

My experiences within this arena have disciplined me to treat this as business, and avoid the anger that the gasco's can easily cause in a landowner's gut.

I do not do more than very routine business with my lessee without an "esq" knowing about it.

And lawyers, well, I get what you are saying....even the ones I deal with can joke about that profession. And I've known some real jackasses and incompetent boobs.

I guess we'll have to disagree.

But I'll leave you with this: If you think judges at any level are as fair and unbiased (and themselves as knowledgeable in O/G law) as you think they are, you will be rudely awakened when summary judgment come crashing down on you because you did not prepare a brief correctly or were not correctly following procedural practices in your complaint. 

Look, if you need surgery are YOU going to do it? No, you get a surgeon.

LAW? Get the damn Lawyer.

But I get your anger, I swear to God I do.

Outwork and outsmart the opponent. Don't get angry: Get focused and educated. 99% of the battle is preparation.

Finally, best advice ever given to me by one of the "esq"s when I whined about "fair and right" regarding a certain issue early in life:

"If you want fair and justice, seek God and join a monastery,

Here, we talk about the law."

Permalink Reply by Mark Hrutkay on March 25, 2016 at 10:37am

Better advice than most lawyers can give.....

"

But I'll leave you with this: If you think judges at any level are as fair and unbiased (and themselves as knowledgeable in O/G law) as you think they are, you will be rudely awakened when summary judgment come crashing down on you because you did not prepare a brief correctly or were not correctly following procedural practices in your complaint. 

Look, if you need surgery are YOU going to do it? No, you get a surgeon.

LAW? Get the damn Lawyer."

Permalink Reply by Fast on March 25, 2016 at 11:34am
I agree with Invictus. I might not want to join a class action suit and would definitely go SOLO as in me and my experienced attorney. Going Pro Se is not a smart move.
Also, these oil & gas companies have their in house lawyers on payroll. Very seldom do they have to step outside of the box to hire a firm to represent them.
Permalink Reply by Mark Hrutkay on March 25, 2016 at 10:41am

Depends on your definition of "very little"   Probably at least $10k to get the situation investigated and a complaint filed.    Maybe another $40k to get past depositions and experts, and if it goes to trial, expect that amount to double.   A non complex civil case will easily cost $100k to get to a jury verdict....


YES with FRAUD you do get attorney fees...   Proving the INTENT to defraud is another matter, not easy to do.....

Permalink Reply by William Dotson on March 25, 2016 at 11:15am

Well I think Judges are (for the most part) good caring people. None I know of would divide the baby. I sued an insurance company without a lawyer at a cost of under $500 and won. It's only the weak who won't take matters into their own hands when pressed. I don't give a fuck. I say sue the bastards and let the chips fall where they may. And it won't cost anywhere near the absurd amount of $100k.

Permalink Reply by INVICTUS on March 25, 2016 at 12:48pm

Small claims court I completely agree with you. The rules and concept favor the non-attorney to make the case. No problem.

But otherwise, its common pleas, more likely Federal court.

Almost no comparison.

I don't want a "caring" judge.....I know of one of those now who's judgeship and ability to practice law is in now danger of being stripped.....because he did not act like a judge....Impartial and disinterested, unbiased.

If you knew what many attorneys know about many judges , really able to talk "shop" with them about the quality of judges and the way they get elected now, you'd really worry about the "caring" ones...who are biased by emotion and not hard facts or drawing logical legal conclusions.

I wish it were otherwise.

 

Permalink Reply by Mark Hrutkay on March 25, 2016 at 12:53pm

William I wish you the best suing gas companies.....  I'm sure you know what we say about people who represent themselves........

Permalink Reply by William Dotson on March 25, 2016 at 1:00pm

You all don't get it. If they are stealing my money, I will at least get the satisfaction of knowing that they are not going to keep it. I will force them to spend it on legal fees. Retainers only guarantee representation. It does not cover the cost of that representation. The satisfaction is getting in that first good lick. It's worth it no matter weather you win or lose.

I have always thought this site and others like it was funded by O&G and their legal firms. Thank you for confirming that for me. 

Permalink Reply by Mark Hrutkay on March 25, 2016 at 1:15pm

I never did ANY oil and gas law... My brother and I spent $150,000 to straighten out royalty issues on property my parents bought 20 years ago.   I don't fund this site.   People like you have no clue what it costs to file a lawsuit and go forward with it.   The complaint is the easy part.

Feel free to walk into a competent lawyer's office and let them tell you what it takes to get through a trial at $250+ per hour......  There are a hell of a lot of hours.  

You get what you pay for....

BTW... The retainer is payment in advance for work to be performed later...  Paying a retainer does guarantee representation, but it is a payment for future work.  

If you think OG companies are even slightly concerned that you are going to sue them, think again.  They are much better situated to defend a case than you are to prosecute it.  Any large corporation can easily spend you into bankruptcy.

I wish you the best....

Permalink Reply by Fast on March 25, 2016 at 2:02pm
William,
Trust me I get it. I went 5 rounds within 18 months of signing my lease. I paid my lawyer to get the job done. I find it interesting each time the firm went after them I got what I went for. With that said. Do you think they would have paid up if they were right? I'm thinking not!! However, I was going strictly off my lease and dammit I was going to make sure they did their part. I feel the same will happen when I go for the audit because of the under payment of royalties. They know they are screwing me, you and a lot of others. I can't worry about the guy next door .. I'm fighting for myself, I have no problem sharing my experiences to educate others.
I guess the difference between myself and others is I knew this wasn't going to be what was promised. So I have no disappointment bc I knew going in it was all talk. I have only one thing that keeps me sane. I'm free in 2017 and I have No intentions of signing another deal with the devil. They are only looking at today ... I'm looking at tomorrow and when they want something else from me..... Its not going to happen. The tide will turn... Trust me.

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