Received an interesting statement for Sec 1105N06W today. It appears Marathon has reviewed Gas & NGL payments on Burton 2-11 and Burton 3 and 4 going back to 12/2015. They are claiming an overpayment of about 25%. This results in a net negative balance as of Jan 2020.
Does anyone have any idea what this is about?
Thanks in advance.
Got a printout for check details yesterday with recalculated the net value due to PTPC adjustment. Burton 2, 3 & 4 wells Sec 1105N06W. Any information on this adjustment.
It does happen frequently that companies do an audit on wells and make adjustments. Best thing to do is call the Division Order analyst for that Section, Township and range and ask them what happened.
If there are no adjustments to your distribution decimal or to gross quantity then it appears they have only gone back and recalculated their Pipeline Transporter Purchaser Costs. I am not sure if there is any way to fight that short of a lawsuit.
Thanks for the information.
Mike_Fancher Reviewing check stubs for clients under wells where Marathon is the producer in Texas, we have seen in the past seven months extensive “claw backs”. (Not just Marathon… a good number of the companies.) We define claw backs as recovering post production cost for previous years of expenses, that supposedly were never deducted/debited on previous checks. If you have copies of your old check stubs going back to 2016, look for deductions/debits for post production cost, (transportation, dehydration, compression, etc.) posted on those old check stubs. Then, if you have a way to compare volumes of oil and gas reported to the regulatory agencies in Oklahoma for your wells, compare the volume reported on your check stubs and compare those numbers back to the volumes reported to the agencies. Perhaps you will find missing revenue within. Recently, one of our clients was not paid for 10,000 barrels of oil over a three (3) month period. At an average price of $60 per barrel, they have not been paid a little over $1,000,000 dollars since July, 2019. A bit unusual, but we see errors continuously. We have seen cumulative errors aggregating more than this over longer time periods. Low oil prices, high operating cost.
Also review your lease and see if you have allowed post production charges or if your lease says Gross proceeds. Do not let them deduct if you have a gross proceeds lease.
M_Barnes: what are the statute of limitations in Oklahoma…ie how many years can one look back if the mineral/royalty owner wants to contest debits and credits? In Texas it is four (4) years, normally.
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