Has anyone else been experiencing issues with this new Operator? He bought the East Hobbs San Andres Unit from POGO in June of this year and it has been a catastrophe from the beginning. He blames his accounting firm that he hired to issue checks. Obviously, he did not have his ducks in a row when he took over this Unit. He has not entered any well-production data since August of this year. As far as I am concerned as a Royalty Owner, there are no excuses that mean anything anymore. Never had any issues with receiving Royalty checks from any of the previous Operators. I feel sorry for the Working Interest Owners and the other Royalty Owners.
1 Like
You might want to contact the NMOCD and ask process to require operator to file late monthly production reports. How much time does NM allow before sending a notice to the operator? In Texas, notices are supposed to be sent by RRC 60 days after the production report is due. Sometimes you have to prod them to get this done.
Thanks for the info. I will contact them.
Same issue with Ring Energy, who sold to Scorpion. No production reported since July. (Despite the fact there was substantial work over in the summer).
I did contact EMNRD & they are looking into it. They monitor compliance, but are unable to help with revenue. Pretty sure we will need attorney for that.
Production Reports are supposed to be submitted with in 90 days in NM. As far as the data being posted, always give at least a 90 day lag time. Sometimes they can go over that, depending on the organization. Pogo is a long standing and big company, I dont t hink this one is, if it is a mom and pop operation, expect this and give them a break, they’re the heart of where we came from, unless you want big corp to run the little guy our of a chance to make his own living. If production has declined considerately , the operator may have to be doing some work to get the wells back to production. Who has time for the tax man when your working in the oilfield? I wonder why Pogo is dumping the property -got to have a reason, usually not feasible for them, better for a small company. Could be neglect, its more manageable when you have a staff or attorneys, secretary, pumpers, field supervisors, production accountability is mostly answering to the MMS, ocs is not at the top of the totem pole when yo have the feds breathing down your back.
This topic was automatically closed after 90 days. New replies are no longer allowed.