Harrison Oil & Gas, in a well in 35-7n-13e, simply doesn’t properly pay us for our gas. In the 19 months they have operated the well, they have sent only two check details with checks, and after lengthy bugging on my part, paid a mystery payment (no check detail) to reconcile their 1099 claimed amount that they said they paid. In 2019 they paid nothing and provided no 1099. So how can I skip Harrison Oil & Gas and go to the purchaser of the gas to get payment directly from the purchaser?
A few things to check first. You can watch the production on the OTC tax site. It may not match the stubs exactly, but will give you a feel for trends.
Gross Production. Are you in the State 1-15 or Naomi 1-35? Both of them report from the same PUN number .
Those are old wells. Brower Oil & Gas sold to Harrison Oil & Gas Oct 22, 2019. Usually takes a while to get a transition completed with all the paperwork. Then Covid hit… They may not have paid in 2019 but check your stubs for early 2020 and see if the later months are listed there. Gas usually runs two months behind. If they bought in late Oct, then not surprising that they would not pay until at least Jan 2020 or later.
The Naomi well is not stunning. Only producing about 100mcf/day plus or minus. The State well has last production June 2020 listed so far.
Check your division order and see if you have the minimum payout set at $100. If so, then that might be why you are getting sporadic checks. Depending upon your net acres and your royalty, the total may need several months to build up to have enough to pay. You can reset that to $25.00 and perhaps get more frequent checks. It is common for small wells to have a catch up payment at least once a year. You should have had a check detail.
Thank you for your kind help. According to OCC and OTC online, in 2019 State 2-35 in 35-07n-13e produced 12,754 mcf from August through December 2019 (Harrison Oil & Gas receipted operation of this well via the OCC from Brower Oil in October, 2019. In that order Harrison received some 56 wells). In all of 2020, 37,947 mcf was produced, and January through March 2021 11,633 mcf was produced for a total of 62,334 mcf. Harrison Oil & Gas has seen fit to produce only two check details–for November and December of 2020–in violation of OK Statute 52-570.12. So what Harrison collected for our gas is known only to them except for those two months. But assuming only $2 mcf: 62,334 mcf x $2 = $124,668 x our decimal .0106445 = $1327. During the entirety of their stewardship, Harrison has paid us only $730.86. They dated their earliest check 11/30/2020 but all four checks were actually received between 8 March and 12 April of 2021. Needless to say, they have not paid statutory interest. My phone calls and letters are ignored. Perhaps there is a hungry lawyer that would pursue a class action lawsuit. Back to my original question: how can we be paid by payment in kind, skipping this operator? I contacted Symmetry, the OTC listed purchaser of our gas and originally received encouragement, but they have since declined to become involved. Hopefully the Oklahoma Commissioners of the Land Office are receiving their proper royalties.
Sounds like it is time for an attorney. Have you also sent demand letters by certified mail?
Thank you. Our attorney will send the demand letter.
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