We have 2 wells operated by Eastern American Energy Corporation under a farm out with EQT and 1 under a lease they acquired. A couple of years ago there was a lawsuit against them, and a settlement. We stupidly signed the agreement to modify our lease to allow post production costs. However there was also a lawsuit against EQT and our lease with them was flat rate so there was no modification of lease option for us. We are paid monthly for these 3 wells. 3 months ago the checks for all 3 wells started having a deduction for "OWNER TRANS". There is a column for "OWNER REVENUE" and another for "OWNER NET ROYALTY". The revenue minus the trans = net royalty. I can see the deduction on the one where EAEC holds the lease, but not for the farmout. Those 2 wells are 1/8 royalty, not flat rate, but were not part of EAEC settlement. 

Does anyone out there have this situation?

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