Curious if anyone is experiencing prior price adjustments on their royalty cks? We are with Diversified and our wells are in Texas. The last 2 months we have had several prior price adjustments dating back 7 months. This has never happened in 11 yrs with 4 gas companies. I have contacted multiple times and they have not gotten back with me. Has this happened to you and can you assist me in understanding? Thanks so much,
Yes, it just happened to me! You can search my posts to see the answer I received. As I understand it, if there is doubt of ownership they just keep the money until it is settled, then make the distribution properly. In my case, I got money for oil sold as far back as January 2021. What I learned is that it may go on for decades before it is all sorted out. I don’t know if you can get an answer from the operator when all claims are settled or not. Otherwise just be happy when you get a strange check!
We have had these wells for 18 yrs. I would not think there would be a question of ownership…what are your thoughts? Am I wrong to think that…
Where do I go on this site to see your responses?
Sometimes there are adjustments for past sales that have nothing to do with ownership questions. How big are the adjustments? I get them from time to time, but they are generally so small, that I don’t make a big deal out of it. Generally under $1. To my understanding, it generally has to do with the quality of the gas being sold and how much the end receiving company is willing to pay for it, and that is why it can be adjusted so many months back. (That is how my father explained it to me anyway.)
$1000 total for adjustments the month of May.
Do you have a mailing address for them? I would send a certified letter asking for clarification. I never get anywhere using phones. Email works sometimes, but usually, a letter is what gets through to them. So sorry you’re having to deal with this.
It is not uncommon to have PPA, sometimes for multiple months, for varying reasons. You may receive net positive or net negative royalties. For example, the purchaser may audit and determine it underpaid or overpaid the oil company and the oil company will then pass the adjustments on to the royalty owners. The well may have been reclassified as a gas well (6 digit RRC#) instead of an oil well (5 digit RRC lease#) and then qualify for a reduced gas severance tax rate for some prior months. The oil company will then be refunded severance tax by TX Comptroller and pass that on to the royalty owners. Oil company may determine that initial production was misallocated among wells and readjust the volumes among the wells. You could have a RI in some but not all of the affected wells. Oil company may determine that due to a new legal case decision, the exact wording of your royalty clause allows deduction of certain costs and retroactively apply those costs. If you had been with Shell Oil, then your checks would have had repeated adjustments back through 2017 after its accounting was moved overseas - a lot going in and out and in and out. None of these have anything to do with title or DOI changes as that is a very different issue.
It was net negative of $1,000 in one month.
They must have taken it from you and given it to me, mine was $1000 POSITIVE! 
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