Has anyone else noticed all the deductions on their XTO payment?

My normal deductions for the past 3 years averaged about 7-8% of gross proceeds.  January payment was over 34%!  Several calls to "revenue" and they do not call me back with an answer.  Just wondering if anyone else is experiencing this.

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Permalink Reply by Jerod Karenbauer on February 14, 2019 at 3:22am

Ken,

I have also had deductions taken out that should not have been. I called and they said it maybe due to their new system and they would be checking into it and I would get an e-mail with their results.  Well, that was Feb. 1 and I have not received a response back yet.

Permalink Reply by Ken A on February 14, 2019 at 3:53am

Good luck getting a response.  My first contact was January 29th and they haven't responded back yet.  First I was told by the end of the week.  Next call 7 to 10 business days.  My last call I was told to be patient, they are getting 200 calls and 100 emails daily, and had no idea when I would be contacted!  Spoke with a local XTO contact.  They upgraded to a new system in January (after 2 years in the works) and, apparently there is a "glitch" where it is deducting all expenses from royalties when the lease says they are NOT to.  I was also told it should be corrected and the amount owed added to the next payment (Feb.).  Because there are so many corrections it may take an extra month for the corrected payment to show up. XTO Energy is a large corporation.  Terrible way to treat their "Business Partners".

Permalink Reply by GM on February 18, 2019 at 10:55am

Get any response Ken? I'm waiting on a reply from them as well.

Permalink Reply by Ken A on February 18, 2019 at 2:46pm

I'm due to call them this Wednesday.  If I hear anything worthwhile I'll post it.  I'm hoping I will see a correction in my check at the end of the month, but I'm not holding my breath.  My lease reads that if I notify them via certified mail they have 30 days to correct or, at least, respond to me.  I'm holding off on that because I think that may lead to more delay.  If it comes to that I will probably get an attorney involved.  It's sad, you have an agreement with a large corporation, and they essentially do something like this to their "business partners".

Permalink Reply by Ken A on February 20, 2019 at 6:52am

**UPDATE*   My weekly call was made to XTO to find out what's going on with the unauthorized royalty deductions.  I finally spoke with someone who shed some light.  They are aware of the problem with deductions.  First I was told (again) they are upgrading their system.  They are aware of the unauthorized deductions and are trying to fix that so the February checks will be correct.  Once the unauthorized deductions are fixed they will be concentrating on paying the unauthorized January royalty check deductions.  I was told not to expect to see that until the March or April royalty check.  I was also told that they will be paying INTEREST to us on the late payment amounts!  
 
The analyst I spoke with in Revenue also told me she would update me in 2 weeks as to the status of all this.  Finally, an answer!
 

Permalink Reply by Jerod Karenbauer on February 21, 2019 at 2:31am

Thank you for the information!

Permalink Reply by Jerod Karenbauer on March 6, 2019 at 2:34am

Have you received new division papers and a new decimal number?

Permalink Reply by GM on March 6, 2019 at 6:13am

I did, which well unit are you guys in?

Permalink Reply by Jerod Karenbauer on March 6, 2019 at 6:23am

I am in the Clouse unit. Did your decimal # change to?

Permalink Reply by Ken A on March 6, 2019 at 6:50am

Yes, I did receive new division papers. I am also in the Clouse unit. The reason for new orders being is they added about an acre to the production unit.  As of 2 days ago, there is no new addendum recorded at the courthouse.  According to my lease they can do that up to 710 acres.  Right now we are at about 694 acres. I just reviewed my orders to make sure everything is correct, signed and returned them.  Note if more than one person has to sign, you only have to give them one Social Security Number because they only issue one 1099. -At least that is what they told me.

I also noticed that this months gas royalty contained no deductions at all, which, sadly is probably wrong.  I spoke with the Revenue Department of XTO and was told they just wanted to get everyone paid this month since they are having problems with deductions.  She said in the coming months you will probably see deductions for what they are allowed to take and added money for the deductions they took in January that they weren't allow to take.  I asked if they will include some type of explanation of all these debits and credits?  I was told NO, that's what you call/email them for if you have questions. Evidently XTO is having a lot of problems.  They lady I spoke to told me they are now fielding over 1000 calls a day, not including emails.  If you try to call them I suggest you call early in the day.  If you get their voice mail or roll over to their voice mail, hang up and keep calling until you get through.  I haven't had much luck with them returning calls or emails. 

Permalink Reply by Ken A on March 6, 2019 at 11:47am

*UPDATE*  Spoke with another landowner in the Clouse unit.  In their check for February XTO also took out too many deductions!  They took over 30% in deductions for both months when it should only have been 7 or 8 %. 

Permalink Reply by Ken A on March 6, 2019 at 11:51am

Yes, my decimal was reduced just a bit.  That's because they added another acre to the production unit which is allowed according to my lease.

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