"Ask to cap the transportation costs and any other post-production expenses such as compression, marketing, trestment. Make sure that cap stays in place, survives an assignment or conveyance should your well be unitized of assigned. Reasonable…"
"Your state has a law that says when you should be paid. In Texas it is 120 days after first production then thereafter 60 days following monthend of oil production and 90 days following monthend of gas production. Check with your state agency."
"There is very little in a lease that is "non-negotiable". That just means that they don't want to negotiate. Post production costs are indeed negotiable. You may not be able to eliminate them but you can get them…"
"Phillip - Excellent answer and thank you for citing the Kilmer case.
Larry - I hope you choose to reach a settlement with Anadarko rather than challenging this in court. And I hope all the attorneys out there who profess to understand this and a few…"
"It has been an industry practice for many years to suspend royalty or working interest payments until they reach a minimum amount, sometimes set differently by each state. The reason is that the cost of producing the check may be more than the…"
"Mr. Lilli ... Great answer. My only complaint is with the "ambulance chasers" who profess to know a lot but have far less expertise than they indicate. Many may indeed know the legalisms but I find that they often fall far short on the…"
"I understand your frustration with this. Unfortunately, unless a KNOWLEDGEABLE attorney (who isn't just a bloodsucker such as there are plenty of out there) can tell you otherwise and would take your case on a contingency basis, I think you…"
"Here is what is likely your problem. Please be aware that I AM NOT an attorney and AM NOT giving you legal advice of any kind whatsoever. "At the wellhead" can be determined to be the value of the product at the point of production. There…"
"Actually your first step is to read your lease and find out if post production deductions are or are not allowable. Then determine if the sale of the product takes place at the wellhead (on the lease) or at the purchaser location. Putakes a ton of…"
"No but I don't follow that many specific cases. I am familiar with the practices of a number of oil and gas operators and some wiggle,room lease clause wording so I was intrigued by your original post."
"I find it amazing that someone at Anadarko's (or anyone's for that matter) CR dept would respond like that. Per Moldyoak's comment, would you post the language referring to deductions and perhaps we can make some sense of it."
"Joseph-Ohio. Any contract is drawn up to the benefit of the party drawing it up. That's what the car dealer or the home remodeler or anyone else does. Leases are drawn up to the benefit of the energy company and that's ok. It is up to the…"
"There are a number of legal cases coming up vs CHK that have to do with limiting post production deductions. Most royalty owners don't have the means to sue an operator when they mispay. The Bass brothers have sued for selling product to a less…"
"There are plenty of other companies. Talk to Range, Rex and many others. Not all have the same constraints, policies, objectives or approach. Tell them you will not accept a deal with no cap on post production expenses. Mention the Bass brothers.…"
What makes this site so great? Well, I think it's the fact that, quite frankly, we all have a lot at stake in this thing they call shale. But beyond that, this site is made up of individuals who have worked hard for that little yard we call home. Or, that farm on which blood, sweat and tears have fallen.[ Read More ]