We’re receiving our monthly checks from Hilcorp, and they do vary-- pretty widely. Since I’m new to this, I don’t know what to look for on the reports on Oildex.
I am experience the same problem, send several e mails gotten no reply. I am getting my attorney involved now.
I live in California and hope that someone will start a law suit were I and others can join in.
I submit that we get a class action going…continency basis…Holland and hart or other… Do any of our min owners who are attorneys want to step up and investigate? People we may not get paid for another year! They are paying everyone [drillers, all admin, truck drivers and on and on…with our!!! money]
ok I also have yet another great idea: I could start a twitter page and it could be called san juan mineral rights owners…call hicorp party # 1…by doing this and if we all populate this media, eventually attorneys will vie to help us…we would never use H’s name or we, me could be sued for slander or something…I will wait to hear from you all before I do it…
And last but not least here is an article that essentially explains our position and it is nationwide…
http://www.sjbrt.com/News-Releases/default.aspx
Now hilcorp will not pay through end of 2019…And maybe even beyond that. Are they running our wells and simply not paying us? [because instead of of 2 mill for cap expenses they paid 24 mill?] Is there a legal chain of payment? Can they just run our wells and not pay us tillwho knows when.
There is quite a bit to learn in order to make certain you are receiving your “decimal interests” worth of whatever is being withdrawn from the properties in which you are invested. I have described some of the detail to watch regularly in previous posts to particular individuals on this site. (Open responses available to all subscribers to the list.) You may be able to access them. If you cannot, I would suggest you join NARO and/or go to a National NARO meeting, and if that is not possible attend a regional meeting. They offer a beginning course in Mineral Management every year at the conference and they have books for sale that help you navigate what is important for you to know as you navigate this complex industry.
I emailed Hilcorp owner relations and asked for every well API # Trac# Legal description, the interest type, NRI, Well name andtract name because I had no information except for one section in San Juan County and I got an email back within 24 hours with everything I need to finally put it in my mother’s will and File Transfer of Death Deed on all her her Royalty interest rights.
I also just got finished checking to see if they were all active and they are.
Good job! Now you can check the MCF production on the New Mexico Oil Conservation Division Site and see if Hilcorp’s figures match up with NM OCD. If not, you can ask them why not?
You nailed it! They have paid zero dividends and claim to be investing in new production - and yet production numbers have decreased?! Hilcorp claims the new wells have produced above expectations… So where is it going? Also - the decrease in stated production is above the normal rate of depletion. I don’t think it would be a difficult case to prove.
What is going on here is Hilcorp paid too much for the acquisition - they are paying back the note with skimmed production. They know this will lead to litigation but they will make more off the float - than they will have to pay back with interest… This is a strategy that has been very successful for Warren Buffet / Berkshire Hathaway…
They are paying back Carlisle Group for the billions they borrowed to acquire the production rights from Conoco more likely. Hilcorp has a well earned reputation for slashing costs and bare minimum investment.
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Thanks for your insight. From the beginning I have suspected Hilcorp’s bad actions as a strategy to pay that $300M they owed Conoco the first year—paying their debt on lease owner’s (and investors) backs…so it is not surprising that they continue and amplify the abuse. Possibly of interest, I have received “dead silence” on this subject from several different OCD people in Santa Fe, including the interim Director of the Division. Draw your own conclusions there.
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Not surprised… I have reached out to a reporter to try and encourage a story - perhaps if enough people start coming together with the same issue things will change.
In Feb 2018 Hilcorp proposed to invest $548K on (7) well re-completes (approx $78K per well) - Hilcorp revised the plan in Sep 2018 and spent $3.924M (representing a 616% increase) on 17 well re-completes which represents $231K per well (a 196% increase)?
Where is the explanation for the cost increase? How did they miss so bad?
In 2019 Hilcorp proposed to invest $728K on (5) well re-completes (approx $146K per well) and $1.925M on a new fracked well. Only 2 months later Hilcorp revised the plan. Now the cost for (17) well re-complete increased to $217K each (a 48% INCREASE) - the cost of 1 well went from $1.925M to $7.7M and spent $12.6M (representing a 375% INCREASE).
Once again - where is the explanation for the cost increase? How did they miss so bad?
The craziest part is production numbers have supposedly DECREASED?! Beyond the normal rate of depletion - it is clear from this forum this is a widespread issue on this acquisition - natural gas prices are not great and Hilcorp paid too much for the production rights.
Perhaps if we could get all the leaseholders together and approach this as a large scale fraud under RICO laws we could fix the issue - and get 3x damages… Otherwise Hilcorp won’t change their approach - Jeffery Hildebrand didn’t become a billionaire by playing nice!
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I would be up for it…Holland and hart? santa fe? Because they might keep this going for a year…while paying their debts using our commodity… I did read that oil and gas law declares that to withhold our royalties there should be an end date and a interest payment…[mineral law new mex]…I wonder whether Holland and hart would do a contingency////and yes they will gain with the float time…and we will lose.
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It would be worth consulting a lawyer who specializes in corporate criminal activity to see if this is a case worthy of pursuing. It seems to meet some of the conditions required.
HI! I need the same information. Will you tell me the email address you used? I called owner relations today, and the agent said she’d forward my request to the Land Division. I want your email as a backup. Thanks!
I just looked at our check revenue detail on our Hilcorp account and we are getting an August check for an amount more than we have gotten in a couple years. Good luck and I hope you get what you need from owner relations.