I am new to receiving monthly royalty payments. These last several months we have started receiving monthly royalties from both Hess Bakken and Slawson Exploration. We are only receiving less than $500.00 per month from Hess Bakken. This past month or so I received (2) invoices from Hess Bakken, one for the month of November 2021 & the other for December 2021. The invoices indicate that they are for “Partner Share of Expenses” and are based on our equity share. There not large $15.97 & $24.51 they already deduct alot of fees/charges from the monthly payments as it is. Why don’t they just deduct these as well rather than sending an invoice & requiring us to remit the payment back to them. Plus so far we have not received any such invoices from Slawson Exploration. Can we expect to start getting invoices from them as well?
Also wondering can we expect to receive some sort of Annual Statement from each of these companies. Any input you could offer is greatly appreciated.
You are probably getting royalty payments from two working interest partners in the wells. Or one is dealing with oil and the other with gas sales. Hess may be the operator and you may have a small working interest. Slawson is probably not the operator so will not send the main JIB bills. They send the invoices to keep the accounting for Joint Interest Billings separate from the royalty statements. You should get annual 1099’s from both. I am just starting to see my 1099’s come in from various companies.
Did you participate in the drilling of the wells? It sounds like you did so I’m going to assume it’s so, just to give you my opinion as I do participate in wells, dozens to date in fact.
Sometimes an operator who sells a spacing to some other operator will retain a small interest. I have one such operator and former operator. I have yet another former operator Continental Resources that sold a controlling interest in a number of drill spacings to Burlington resources and I get largish checks from both.
I litlerally LOVE when they bill me. Some people would rather they “net you out”. The difference being, when they have to bill you and you write a check, they KNOW you are watching. If you request they “net you out”? It’s like jumping up and down waving your arms in the air and yelling I’m Not Watching! I wouldn’t know if you doubled those charges for no reason!