Barb:
I received the Accounts Payable ledger from Shell today. There are numerous adjustments going back several years. The largest adjustment is in March 2017. The production paid in March 2017 was 16,583.94 BBL oil. The actual production was 3,459 BBL. A difference of 13,125 BBL over payment. Approximately $620,800 over payment less too many expenses charged of approximately $46,200 equals a net over payment of approximately $574,600 for March 2017. I did not do the analysis of the other months. I estimate that we will get a check dated 8/25/2017 in the amount of 25% of the amount that we would have gotten if there were no over payment adjustments. The checks starting September 25, 2017 should be actual production without any prior period charges.
Of course if there are additional adjustments not shown on the report I received which would be shown on a separate report in the future, then there will be additional changes to the above numbers.
The amount to be subtracted from the 8/25/2017 production checks is approximately $122,000.
I did not receive any explanation from Shell. This is just my best guess after analyzing the data. The above numbers are 8/8 amounts.
Bob
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By "Accounts Payable ledger" do you mean the check stub information? Or have you received another record from Shell separate from check data? Shell is required to file revenue information on the CONG page with the Texas Comptroller. That is public information which you can access.
I asked for and received Shell's accounts payable ledger for my royalty interest in the 320 acre production unit. The document I received has all of the debits and credits from the Finley 1H and the Finley 2H related to this adjustment. There is no explanation just dates, well number, and debits and credits for over payments and underpayments of production. I am a CPA. I wanted their internal accounting records relating to this adjustment. I got the actual production amounts from the Railroad Commission and compared the actual production to my royalty runs. I calculated the difference in production paid to the actual production produced. I then calculated the adjustment amount and compared my number with the accounts payable ledger for March 2017. My calculated amount and their entry were substantially the same amount. I did not check all of the other months, just March 2017. Basically. the revenue check issued on April 25, 2017 was approximately 4 1/2 times the actual production. That is why we will not get checks in May, June, July and only a partial amount for August.
Hi Robert......This is Barb Patton.....Finley 1 - 11 wells ward county. Could you please call me 573 898 3099. it is thursday 1 oclock. Me and my 3 sisters are confused about our royalty payments...i can explain if you could give me a call Thanks Barb