I assume some of you have experience with this. Seems that the royalty payments haven’t been sent out this month. When should we expect to start receiving royalty payments again?
Several things may be happening.
Due to the bankruptcy, they may be a bit delayed if a separate fund needed to be set up with a conservator.
Due to the COVID shutdowns, personnel may be working from home and not able to get to all the data they need.
Due to the price drop, many wells have been shut in or production choked back. No way to know if your wells are in that category until you get your next statement. Volumes may be down and also revenue due to prices. If your Division order has a minimum of $100, you will not get a check until it rises above that amount. I usually set my Division orders to $25 when I originally sign them so that I don’t have missing checks as often.
Stay calm for another month…
Here are documents from filing. Seems bakruptcie was to primarily lose very large building leases in Houston. These would be from GasStar merger. Couple of pages from bankruptcy doc included. Payments have been set aside for court and will start again in 90 days or so. Unable to attach copies. lack of knowledge.
I will make a mark for our calendar for when to expect the mineral revenues to start after Chisholm’s bankruptcy. We are entering at least month number 2 without royalty distribution, at least from my Chisolm/Kingfisher county wells. We can only hope that cash-flow will eventually start. Best guess is early November?
the chisholm wells are mostly shut in and non producing. the revenue won’t start until they make a sale and then you will have to wait 90 days before you see a check.
Shut in wells can be thought of as good during the very low prices for crude oil. Hopefully WTI will stay above 40 and get stronger. I will keep my positive thoughts.
We just rec’d a check from a well with Chisholm. They still won’t respond to anything.
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