Hi, I am new to this forum. I joined specifically to meet up with other royalty owners involved in Weld county production thru Anadarko.
I am wanting to get feedback from others on what they are seeing as far as royalties over 2013 and early 2014. We have seen a substantial drop in payments and cannot get answers. Also, in looking at our statements, it would appear that a rather large portion of our checks are being reduced due to Transportation deducts and (X) "other deducts". These are new deductions that we hadn't seen prior to 2010.
Would appreciate hearing from you also on your general opinion of dealing with Anadarko ie problems you have had, questions, solutions.
Much of the production decline in recent months is the residual effects of the floods last year. Some mountain roads are still not competed. Some production planning and execution came as a result of a large land swap between major operators. I your payee didn't change, you may not have been effected by the swap. In some areas I'm familiar with, pipeline construction has caused wells to be shut in. In the larger picture, production will continue to expand over time as more portions of the basin continue exploitation through horizontal and directional drilling and with completion technology advancement. Fracking restrictions and public concerns with fracking in some political areas may delay production of minerals.
Your family has been leasing for a long time in the area and some of your newer wells may have been drilled on land held by production (HBP). I doubt that the old leases with lower royalties have a unilateral deduct clause in them so check them out and notify the appropriate payee of the mistake. If you were asked to sign a new lease with a higher royalty and onerous additions concerning marketing costs then signed a Division Order supporting the new lease, Whoops.
At any rate, with lots of land and wells in the Niobrara System, your are in for a good, long ride depending on, as always, locations. In fact you may realize considerable opportunities ahead depending on your lifestyle desires.
Gary or Linda or Others, I do not have the legal description in front of me but the location of our mineral rights is the 80 acres North of the Empire Reservoir. Used to be called Green CO, I think. Does anyone else know about leases going on there? Anadorka sounds familiar.
Send me a personal message with the legals and I will look them up for your.
Judy Archer Brucker said:
Gary or Linda or Others, I do not have the legal description in front of me but the location of our mineral rights is the 80 acres North of the Empire Reservoir. Used to be called Green CO, I think. Does anyone else know about leases going on there? Anadorka sounds familiar.
Much of the production decline in recent months is the residual effects of the floods last year. Some mountain roads are still not competed. Some production planning and execution came as a result of a large land swap between major operators. I your payee didn't change, you may not have been effected by the swap. In some areas I'm familiar with, pipeline construction has caused wells to be shut in. In the larger picture, production will continue to expand over time as more portions of the basin continue exploitation through horizontal and directional drilling and with completion technology advancement. Fracking restrictions and public concerns with fracking in some political areas may delay production of minerals.
Your family has been leasing for a long time in the area and some of your newer wells may have been drilled on land held by production (HBP). I doubt that the old leases with lower royalties have a unilateral deduct clause in them so check them out and notify the appropriate payee of the mistake. If you were asked to sign a new lease with a higher royalty and onerous additions concerning marketing costs then signed a Division Order supporting the new lease, Whoops.
At any rate, with lots of land and wells in the Niobrara System, your are in for a good, long ride depending on, as always, locations. In fact you may realize considerable opportunities ahead depending on your lifestyle desires.
Gary L Hutchinson
Minerals Management
Gary,
We haven't done any new division orders in this time frame. The transp. deducts just seemed to appear suddenly, and they are substantial. In fact, adding up that, the new state WH deductions, sev and prd taxes, and this mysterious (X) "other deductions", means we are losing approx 30-40% of our royalty income. Not small bananas!
Do you have any info on what the (X) other deductions are? Is it legal for them to just randomly deduct without explanation as to what it is for?
Also, on the state tax WH, which is also a recent phenomena, our 1099's do not reflect the WH so we are not able to claim it as taxes paid. Seems a bit fishy to me....
We were told by Anadarko that we only had 6 wells that were effected by the floods, out of many many that we own. They also said that the December check should have been the only one to dip. My main concern is the substantial drop over all of 2013, in comparison to the boom years we had in 2010/2011. Have any ideas?
Send me a personal message with the legals and I will look them up for your.
Judy Archer Brucker said:
Gary or Linda or Others, I do not have the legal description in front of me but the location of our mineral rights is the 80 acres North of the Empire Reservoir. Used to be called Green CO, I think. Does anyone else know about leases going on there? Anadorka sounds familiar.
Much of the production decline in recent months is the residual effects of the floods last year. Some mountain roads are still not competed. Some production planning and execution came as a result of a large land swap between major operators. I your payee didn't change, you may not have been effected by the swap. In some areas I'm familiar with, pipeline construction has caused wells to be shut in. In the larger picture, production will continue to expand over time as more portions of the basin continue exploitation through horizontal and directional drilling and with completion technology advancement. Fracking restrictions and public concerns with fracking in some political areas may delay production of minerals.
Your family has been leasing for a long time in the area and some of your newer wells may have been drilled on land held by production (HBP). I doubt that the old leases with lower royalties have a unilateral deduct clause in them so check them out and notify the appropriate payee of the mistake. If you were asked to sign a new lease with a higher royalty and onerous additions concerning marketing costs then signed a Division Order supporting the new lease, Whoops.
At any rate, with lots of land and wells in the Niobrara System, your are in for a good, long ride depending on, as always, locations. In fact you may realize considerable opportunities ahead depending on your lifestyle desires.
Gary L Hutchinson
Minerals Management
Gary,
How do I go about checking the original lease documents? I inherited these royalties. Do I contact Weld county?
You can probably find your lease online by googling the name or location of the well or property. That’s how I found mine. I’m with Anadarko in Weld County too and just got my taxes done - sort of late - but in doing them I also noticed the transportation cost and other deducts added up. I don’t have any answers there for you just a similar situation.
Our statements are much lower , a lot is the oil and gas price. some of our wells are shut in( low pressure). We are getting checks every month just not as many dollars.
I’m having the very same problem that you are taking about except the increased transportation and other deducts have been in 2015. In my case those deductions don’t appear to be allowed by the lease. Were you able to find an answer or solution?