I am wondering if anyone else has not received any royalty checks from Rex in a while.  I am on one of the Flinner pads, and I haven't received a check since May.  

Rex informed me of the low gas prices some time around May, but I don't remember reading anything about a production shut-down or no royalties if a minimum production figure isn't met, etc..

Anyone have a clue on this?

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Replies to This Discussion

Brynn,

      Sounds like Lawyer Time. If your producer doesn't feel the need to pay you a royalty, you should take a look at your lease and determine how many paragraphs have been violated since May.

Then hand over your complaint to a lawyer for action. There may be a group of landowners not being paid by your producer, which could be dealt with by using a Class Action or Group Action.

Your producer didn't buy your mineral rights, they leased them. It's time to remind them that they are required to pay in order to play.

Matt,

    If you leased Brynn's property, you would send them a letter to let them know of any decisions you've made about the well or not paying a royalty in order to keep your company profitable.

I would think Brynn is entitled to the same treatment from Rexx.

And by the way, I've seen a few Rexx Royalty Statements with questionable activity as if they have learned how to short change a landowner from the giant of unethical O&G Operations.

I guess you're right.

Bruce Buck and I have called our producer to listen to their tall tales about "Adjustments" which are undefined but represent those negative numbers that reduce our royalties, Pay Decks as to why our ownership decimal changes constantly, and why our royalties are different when using the same lease.

We sure are glad we called them rather than finding a lawyer.

Brynn,

This may not apply to you but Rex only pays a monthly royalty if the monthly royalty exceeds $50.  The dollar values accumulate and payment is made in the month where the total exceeds $50.  This clause is in the lease.

With deductions through the roof and prices in the tank the monthly royalties are looking pretty bad.

Phil

Phil

With all the gloom and doom, do you find it strange that XTO is drilling a new lateral off the Marburger Dairy pad?

GM,

Those are the Vicnor Gaw units.  The Vicnor Farm vertical well on Brownsdale was never produced.  The Gaw was a vertical well from 2008 and probably did not tie up much land.  So Vicnor Farms property would not be held by production and Gaw was probably a small unit so in effect, XTO is drilling to hold property by production.  I could look up the Gaw unit but no time right now.

I was told that XTO will keep 1 rig running.

Just a guess.

Talk to you later,

Phil

Ok just curious as to why they'd drill an 8000' lateral from the dairy to Vicnor's. Tying up the the loose land ends makes sense.

GM

Travelling a mile NE at 45 degrees to reach the Marcellus formation and then turning 90 degrees to the NW and placing a lateral doesn't take a whole lot more pipe.  Going a mile to the side and a mile down only takes about 40% more pipe that going a mile straight down.  Locally, the Rex Shipley South unit has a well like this.

Phil 

Philip, that may well be the case, seeing as how my royalty checks were only $120 on average to begin with.  On the other hand, the very last check in May was about $120 as well, and now nothing for 4 months now.  Kind of hard to believe the gas price is the sole reason, so it could be a production reduction or shut-down.

$50 sounds very good, 2 cases of beer!

In Ohio we can buy 3 30 packs of Blue Ribbon down ta Sparkle Market for that kind of money.

and you also got alot better country stations over there, here they stink.

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