Although Permian Resources restored wrongful deductions, income level has not returned to what it was before the Permian fiasco. Any ideas as to why?
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Normal prices changes and natural decline affect your royalties. The volume of the wells decline over time. Less volume, lower prices, etc. lead to less royalties.
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Did you have to get a lawyer involved? I am also having problems with Permian Resources
Everyone is having issues with them. They are taking expenses from us even though there are no expenses permitted since 2015. We have the issue in the hands of our attorney as it represents a staggering amount of money that they have been taking from us. Several of our wells are literally upside down due to the costs being applied. This never happened with any of our prior owners in Reeves.
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Helen - Go to the comptroller office and look at how they are recording the expenses that they claim are charged by the buyer. Per Comptroller site, they are claiming that the expenses are theirs. This is the a seriously sleezy move on their part.
After that, go read Texas Monthly - In the Aging Oil Business, These Young CEOs Stand Out.
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they have not taken care of my deductions at all I hope you got the money that they withheld, I would sure be interested in knowing .
we are looking for a good attorney to handle ours as well, any suggestions?
Erin where do you the find the info you’re talking about on the Comptroller’s website?
Yes. We have attys involved.
What about a class action suit? It seems several Permian Resources mineral owners are having issues.
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I doubt that this problem applies to just a few of us. It probably involves most, if not all, owners. Did any of you have wells operated by Centennial, or are we all former Colgate owners?
We were Chevron before they sold to Permian
I know quite a few Permian owners and all are having same issues… We have Centennial, Colgate, Cimarex, BPX and Diamond Back. All our issues started when Permian bought Colgate and Centinnial
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Permian Resources was formed by the merger of Centennial and Colgate. New accounting lists gross sales and then the costs charged. Prior to the merger, Colgate did not report gross sales on the check stubs. Instead Colgate reported Gross Sales LESS Costs as sales on the checks, effectively hiding the cost deductions. So Colgate has always charged costs. Centennial did not charge costs before the merger, but Permian is charging costs.
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Trying to understand if this issue affects me. Just assumed I was being paid correctly by Colgate. Not sure what expenses are allowed or not allowed. Any reference to Texas statute or article to read for education or more information would be greatly appreciated on what expenses are allowed or not allowed. Glad we all help each other out.
Comptroller website - Taxes - Crude Oil and Nat’l Gas FAQs - Web Inquiry System - (has a link to the CONG database)
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Wade Caldwell is helping us on the same issues regarding deductions that are not permitted under our lease. Never had this problem before with Noble or Chevron.
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Those of you who’ve hired attys—what results did he/she get for you? (Was it worth it?)
I am also dealing with Permian Resources due to unexplained owner deductions in my royalties. My lease clearly states that my royalties are to be “free from expenses and deductions” other than taxes.
It appears that a lot of people are having issues with Permian Resources. I am seeking an attorney right now to assist me in this matter. I would not be surprised if a class action suit is brought against Permian Resources. Bradford & Wilson is a successful class action firm in Oklahoma City, OK. I was personally reimbursed royalties by their successful litigation against Ovintiv that resulted in a $19.5 million dollar settlement for all of the mineral owners. The class action suit was initiated by a mineral owner named Mary Lansden Swafford.
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Read your lease to see if it allows expenses or not. Not sure if you are being charged expenses? Do a lease drop study on the Comptrollers website and see if expenses are declared against your well(s).