I have several old, small mineral interests in Lea that are operated by multiple operators. I have some individual wells but most that have been unitized for many years. The 1099s now arriving remind me of how infrequently we receive communication from the operator but when we do it invariably raises questions. The most recent is in regards accounting by Pogo Oil and Gas and Rover Production wherein the indicated “gas marketing charge” is regularly applied even though no gas is produced during the periods. In the case of Rover, New Mexico even reports the sale of oil but the sale is not even included in the reported revenue so of course there are no royalties. My question is directed to the general group of mineral interest holders who are being charged Gas Processing Fees even when there is no gas production. In my case these are old leases which are silent on the handling of such fees. This seems to be a new wrinkle allowing the producer to avoid paying royalties. There is no significant money involved for me; however, I interpret the action as being directed towards holding the lease. Does anyone have suggestions how to obtain redress from the producers invalid charges? Is the producer paying some kind of fee to retain the ability to move gas to market? Since there is a lot of flaring and negative futures for natural gas what is really going on? Anyone have a good guess?
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gnjoiner1,
There are more ways than you can count to tip the scale in the oil companies favor.
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Operators tend to adopt their own gas deductions plans regardless of lease terms, until a lessor challenges the practice. If it because significant enough, you may consider hiring a local oil and gas attorney.
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