Don't all wells produce some oil?

There are 11 wells in my 1200+ acre unit and I'm being told that no oil is being captured from the wells. Is this possible?

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Permalink Reply by Jon on October 19, 2014 at 1:30pm
0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on October 20, 2014 at 5:10am

Jon,

     Reading the disclaimer at the end of the info, now I see where the ODNR got their disclaimer. It makes me want to add a similar disclaimer to the ODNR employees pay checks.If you can't guarantee the citizens of the state your data is accurate to the penny then we can't guarantee that your paychecks will cash.

We pay these government departments to do a job. They have the laws on their side to guarantee the producers are being honest. Not enforcing the laws of the state will cost each state a huge amount of tax income from the producers and the royalty money being stolen.

I see Tom Corbits name there near the disclaimer. I wonder why he doesn't enforce the laws of PA ($$$$) ?  Answered my own question.

The truth be known after the producer walks off with the first Billion which has already happened in PA, the ODNR figures vs the Royalty Statements will be so far off the producers won't have a leg to stand on when the laws are enforced.

Permalink Reply by James Foster on October 20, 2014 at 7:31am

The NGL's are accounted for on our check stub and I believe that gas and ngl's are reported to ODNR as gas.  I will double check on that tonight.

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on October 20, 2014 at 11:12am

James,

     Let me save you some time since I called Tom Hill of ODNR and he explained that NGLs are not yet required to be reported on the quarterly Oil and Gas Report, or taxed.

Tom said he would call me it that changed.

You can check the Ohio Revised Code under Severance Tax and you'll find NGLs are not listed.

I'm beginning to run into landowners who are getting their first Royalty Statements. I've been asked "What are all those negatives?" which is newbe for what are those negatives on my Royalty Statement.

Without looking at their royalty statement I know what the negatives are, since they were on my royalty statements for seven months of production. They are processing fees for NGLs passing through what was the Access Midstream Kensington Plant. The volume was well above what Buck Well 1H produced, the total volume was taxed and charged such that all of the NGLs royalty ($8,000) was cancelled by the non-coded processing fee ($24,000). The $16,000 remaining negative balance was used to cancel part of the oil and gas royalty we would have received. Columbus, We Have A Problem!

Why is this happening?

Read the below story and if you don't get it, let me know. I have a version that I bold typed to show the parallels between the PA Access Midstream pipeline theft and what is going on in Ohio now.I suggest we investigate and go for the a huge sum before the total theft exceeds what we ask for. This would give the chk ceo heartburn, since they are use to being sued for less than what they have helped themselves to. They didn't steal since they weren't convicted, so their employees tell me.

http://www.farmanddairy.com/news/royalty-battle-pennsylvania-landow...

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