Merit sale to Daylight

So Merit sold 389 wells to Daylight Petroleum LLC in Nov. 2018. I think these were mainly in the Purdy Hart Unit and Purdy Springer Unit. Has anyone been paid for production from them. The last royalty payment I received was from Merit in September for sales through August. Daylight has a virtual office and answering service in Houston and an office in Chicago with an answering machine that corresponds to information on the 1073 form. They have not returned my calls.

1 Like

Lynden, a company in Wichita is handling their revenue checks. The company name is GJ and Co. Their phone number is (316) 267-0264 When I talked to them the lady said they were a small company and when they took on Daylights 7000 owners, it crashed their software they were using and they are moving to a new software. I was told they were going to get my check out ASAP but I suppose they are trying to catch up! . They told me a few of the wells a company called “Vitol” was buying the product from a few of the wells. So some people will get a check from each. Give them a call. Tom

I just received a check from Daylight. I’m sorry I don’t have the check detail of what minerals this was for, I’m out of the country right now. The last Merit check I received was November 2018.

Tom, thanks for the info. I called GJ. They claim that I haven’t reached the $100 threshold to cut a check. Of course they left out that nobody has accounted for September or October royalties or that the revenue stream has been bifurcated with “Vitol” taking an unknown percent. This is a case of sleight of hand for cash flow purposes IMO. I think Merit Energy owed the royalty holders a heads up at least. I never heard a word except from this board. Do you think daylight is bonded with the OCC? Alex, looks like you are the lucky one.

Lynden:

I add a letter with my DO’s when I send them in that includes the following:

"Attn: Division Order Dept. Re: Minimum Royalty Release Owner #

To Whom It Concerns: As per Oklahoma Statute 52 OS § 570.10 (A), please remit revenue when the proceeds have accrued to $25.00 or greater for the above referenced owner.

Respectfully,"

Thank You Todd. I just had that done over the phone with the people struggling with billing for Daylight. Update: Vitol has hired Iberia Mgmt Systems (Gail, 713.629.4490) to bill for them which may be just the crude. I talked with Enterprise in OK City (not sure if they are affiliated with Enterprise Product partners or not) and they claim to have transferred the liability to Vitol when Red River pipeline was sold. I still do not know where production/sales from September and October is. What a mess.

Anyone know how to make the new(er) website respond to the topic of Merit selling out to Daylight? There is a blue button next to the topic, but no matter what I choose (including “Open”) I get nothing but a loop back and forth - no info visible. Not even in “archives”, but I was active in the old website, and am signed up in the new one now. Daylight and Vitol/Enterprise have sent me one small check each about 2 months ago (combined smaller than previous Merit checks); nothing since. 21 4N 4W in Garvin. Thanks in advance. David

It sounds like you may have Windows XP and your browser is Internet Explorer. I am not sure what the problem is but you can work around it by using Google Chrome.

Oops, I meant Windows 7.

It worked when I had XP and it’s still working with Win 7

I’ve been using Windows Pro 7 for quite a while - just hate mucking around in Windows 10. What I was looking for is info on the Merit sale to Enterprise/Vitol and Daylight, with info on royalty payments in Garvin Section 21 4N 4W. I now have seen the “overload” on Vitol’s payment site - I just have not received any payments since mid-January from either Daylight or Vitol.

Enterprise Crude & Vitol are not operators. They are 1st purchasers, buying the oil from the operators, in this case, probably Daylight Petroleum, LLC.

When a sale like this occurs, there is always a lag time between the new operators/purchasers due to having new contracts, or amending existing contracts on top of the new operator having or choosing to issue new division orders to fit their system of doing things. They will get caught up.

Todd M. Baker

Thank you for including this information and phone number. I am new to this forum and I can see that it will be very helpful to me. Paula

Welcome to the forum Paula.

David, Hi. I too have RI in 21-4N-4W, inherited from my dad. I’ve just received a Transfer Order/ Division Order from Vitol via Iberia Management. It has a line allowing them to deduct “trucking, hauling or handling” charges. I was advised elsewhere on this site to check the DO against the lease so I requested a copy from Iberia & they said I need to contact the operator. Would that be Vitol? Daylight? Thanks in advance for any help-Pamela

In Oklahoma you don’t have to sign a Division Order and they still have to pay. Provide them a W9 and your mailing address.
Many operators attempt to weasel in provisions to stick you with costs.

Thank you! That’s a big relief.