Hello,
I'm new to receiving royalties and this month the gas company is taking a deduction for a reduction in price on a previous month that has already been paid. Is this common?
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Yes. Revisions in general are common. They can go back many, many months.
Most often by far, if the gas company determines you owe them money, they will deduct what you owe from future royalties. There is one instance, though, of a gas company (Chesapeake) having brought suit against Lessors to recover royalties which were overpaid to them. However, this did not happen here in the northeast, and has never happened here AFAIK.
Thanks so much for the clarification. Our well started producing at the end of last year so the last 2 months of 2013 and beginning of 2014 were good but now have seen a decrease for March and further still in April. I know that a decrease is to be expected but do gas companies typically produce less in the warmer months and then increase again later in the year?
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