Just found out that Energy Corporation of America has been withholding costs from our lease, an old one with no deductions allowed (at least none listed as allowed). Been happening several months. I called and was told that since the Pennsylvania Supreme Court ruling allowed deductions in Pennsylvania, they decided to make these deductions in other states "to make it uniform". I asked for it in writing, and she said she would try to get Legal Dept. to send me something. Anybody else have this situation? Scary. I have been reading about Pennsylvania and feeling sorry for them but it is time to try to fight it in WV.
Nancy, Thank you for bringing this to the Forum. Most who have been following the attempts by the Oil and Gas companies to subtract every penny possible prior to the payment of royalties thought that this had been settled by the Tawney v. Columbia ruling. Appears we were wrong. My understanding of that ruling is that they can extract only costs that are clearly identified in the language of the lease. The reason she gave you defies common sense. The laws of Pennsylvania do not apply to other states. I would have to think that either they are hoping royalty owners will just except their explanation, or that they want to open the subject again and hope for a different ruling. It may be time for us royalty owners to organize. The Surface Owners have an Organization dedicated to looking out for their interests, I think we need the same. A group would be able to provide more funds to hire legal advice and representation. Plus, it would also bring subjects like this to the attention of a larger group who would possibly be affected. I know that I would be willing to kick in some money to help fight actions such as this one. I would also suggest that all royalty owners get access to the book, “Oil and Gas Law” in a nut shell, 5th edition. By John S. Lowe. It is part of the “in a nutshell series”. It will not take the place of hiring a lawyer, but it can give you a better idea of when you should hire one. Published by Thomson Reuters, 610 Opperman Drive, St. Paul, MN 55123 Hope Kyle Nuttall will jump in here.
Thanks Richard. I was flabbergasted when she said that. I had been worried about Chesapeake but this is an established company in WV.
My sister has the book and I'll ask her to start reading it! She is an attorney but not in WV and not O&G. Yes Kyle would have some ideas. I would by willing to be involved with such an organization.
I'm quite curious if they ever send me something. If I don't get anything by Thursday I'll call again and try to get Legal Dept. who is good at ignoring things.
That's ridiculous. Every oil and gas company knows that laws vary wildly from state to state. I've dealt with ECA before, and thought they were better (more conscientious) than that.
I have at least one other client with extensive holdings who would be interested in getting involved in something like this. Putting together a good organization will take some time and effort, but could be well worth it.
I’ll let you know what I get in writing or if I get nothing I might need you to demand some information from them! They were involved in a lawsuit a few years ago…
The Doddridge County discussion Group has some posts about forming a WV Royalty Owners Group. Would be interested in comments anyone might have.
Has the royalty owners group ever happened?
Not that I heard.
There is a group, the West Virginia Mineral Owners Association. Their email: [email protected]
I think it has meetings around the state.
There is also the National Association of Royalty Owners which has an Appalachian chapter including Ohio and Kentucky besides WV.
I joined the Mineral Owners Association, at least, I think I did. I sent a check and applied.
I have two abandoned wells, that we received payment for, but nothing on the other two both producing. (That is in the process of being rectified right now.) I will certainly be looking for withholding costs listed.