Martha, I am so confused and feel foolish…but here goes…I have received several checks from Trinity with revenues paid on wells in Hughes and Coal counties in Oklahoma. I am accustomed to receiving checks, w3hich are automatically deposited, and don’t often look at the production information. There were a couple of the checks that were quite sizable…a very good thing! I looked at the paperwork on Energy Links today and I see that MANY of the production dates go back three years…a couple even more. I think I know that when there is a long delay in paying the company is required to include an interest…I think in Oklahoma it is 12%…I can’t tell if that was done or not. Reading the sheets is difficult for a partially educated mineral owner! Can you help me?
If there are no title flaws, you are owed 12% if not paid within 180 days. You must send them a letter requesting the same as per OK statutes. Send it certified w/return receipt.
Todd is correct. Send that request in via certified mail return receipt.
It is possible that some of those back years are correction amounts. So compare to your old statements. Make sure that you save your statements for seven years for IRS purposes and for comparisons like these. Use your owner number in the letter.
Thank you, Todd…a few of them even go back to 2019!
Martha, this seems so strange…I’ve received checks from these wells previously. A few even go back to 2019! I need to look at it further…I wish I understood what I’m seeing! Thank you!
I would acquire the leases that these checks are being paid upon. I would start at the beginning and trace them to the present.
It is quite common to have corrections go back many years. If these amounts are very large, then it is good to compare the statements. Sometimes, there was an error in the decimal calculation or an accounting adjustment based upon a meter reading.
Wiffy, thank you for asking the question…I have a similar situation!
Martha, as always, thank you for all your invaluable information!!! As with Wiffy…if the operator has been paying monthly, then in one month, includes prior period adjustments increasing produaction each month for the last 15 months, are they still responsible for statutory interest on the additional revenue since we didn’t have the use/benefit of it for those months? Or does the fact they paid, and then made adjusments prevent interest to accrue?
My question, too, Daniel. If the back payments are from partially paid revenue, do they still owe interest?
I am going to guess that they do not owe interest on back period adjustments since they could increase or decrease. Have never received any.
Thank you, Martha…it was quite odd to get two such large checks that went back three years!
Check and see if you had been paid for the wells before. If not, then fuss about interest. I had a company not pay me for seven years until I noticed that it was missing. Made a LOT of money on interest from them.
Martha, I got another large check today. This is the third large check I’ve gotten that goes back several years in the past months. This one doesn’t go back as many years…2021 is the furtherest. It’s from Trinity and the revenue comes from both Hughes and Coal counties in Oklahoma. If you looked at this Revenue Statement, would you be able to tell if this was back revenue that I should follow up on? If you think I should, do I contact the Trinity Owner Relations and simply ask? I don’t have all of those old Revenue statements to refer back to and this is getting to be enough money that if it’s not been credited, it should be. I’m at a loss. You are the guru!! Thank you!!!
Send them a certified letter requesting statutory interest as per state statutes. That way they have to explain to you why they don’t have to pay you.
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