I have royalties to wells in Louisiana. Last month I received no check from TGNR-TVL LLC, so I inquired about the situation. I finally heard back that the company had ‘deducted past expenses’ and had now shown my account ‘in the red’ so no check was issued. After further requests, they sent a long and unsorted list (spreadsheet) dating back over 10 months. How can I tell if these are real claims against my account? They have since sent a ‘demand letter’ telling me to ‘choose’ if I will pay these expenses ($4,200+) or continue having them deducted from proceeds each month until they are paid, and have given me only two weeks to respond.
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It sounds like they made an accounting mistake and are going to recoup the money by deducting your future checks until your balance is back to $0. It’s that or you own a WI and they’re JIBing you. Doesn’t look good on their end if it’s an over payment of your royalty interest but it does happen from time to time.
These sorts of adjustments happen all of the time. You can either pay it off now or let them take it out of your checks until it is paid off if you are a simple royalty owner.
I would say, No” it’s an accounting adjustment that will take care of itself…but and this is a big butt, I would double check with Louisiana state authorities, and have them look into the output and payments.
In Texas we can ask the state railroad commission who controls oil exploration for accountings and report what we believe to be discrepancies. They will check into these things. …Louisiana must have a similar department. Lee
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