I currently receive mineral royalties from 4 wells in Howard County TX.
West W/2 sections 29, 32 & 41 Block 31 T-I-N
Leech 32-41 unit A
Leech 32-44 2SB
Leech 32-44 3SA
Leech 32-44 4SB
Vital Energy ( formally Laredo Petroleum ) is the company leasing the land and pays out the royalty. payment were pretty consistent with minor fluctuations .
Since the beginning of this year every check has included numerous “adjustment” with dates as far back as 2022. with every month the checks have gone down, without sharing a number the royalty check was quite good, last month it was down by 2/3 and this month I didn’t even receive a check. I’ve call Vital but can’t get a clear answer to what the heck is going on. any insight would be appreciated…
These sorts of adjustments are normal, especially if you have gas with the wells. Wells also normally decline over time as the reservoir is drained and the pressure falls off. Gas prices have been very low at the beginning of the year, so that could be another reason. Have you sent a certified letter return receipt to the owner relations and division order departments of Vital?
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No, but that’s a good idea. Thank you!
Hi @NonniL, for what it’s worth, this unit seems to have some major productions ups and downs (with several months of production interruption in 2022). We did a production audit for a client and we had similar questions. We reached out to Vital and we are waiting to hear back from them. I will PM you a production report. Definitely follow up with @M_Barnes 's reco.
I got this text from my cousin
Just talked with owner relations at Vital Energy. Wells had been shut down due to vessel issues. Vessel issues may imply some damage to the tanks used to store and/or process oil. She did not have any details. Wells were restarted in mid April and then shut down again in mid May supposedly due to fracking impacts. Fracking impacts Indicates that they are fracking new wells nearby and so they shut down Wells that might be damaged by the fracking process nearby. Are they drilling new wells on our property? Maybe. Wells were shut down again in mid May all she had for that explanation was “issues”, so don’t know what’s going on in a detailed manner, but, hopefully things will start up again soon.
HI NonniL 
> Wanted to share this short video from Tracy Lenz’s youtube channel. She does a really good job explaining when and how wells are shut-in by operators (i.e. fracking impact, etc). (all her videos are super helpful). It was useful for me to understand the technical aspects. Sorry to hear these wells are having issues. And sometimes the explanations from operators are as clear as mud. Video: https://www.youtube.com/watch?v=geBujh-_bMQ&t=37s
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Thank you! Just watched the video and passed it along to my family .
Just got this text from my cousin
Just talked with owner relations at Vital Energy. Wells had been shut down due to vessel issues. Vessel issues may imply some damage to the tanks used to store and/or process oil. She did not have any details. Wells were restarted in mid April and then shut down again in mid May supposedly due to fracking impacts. Fracking impacts Indicates that they are fracking new wells nearby and so they shut down Wells that might be damaged by the fracking process nearby. Are they drilling new wells on our property? Maybe. Wells were shut down again in mid May all she had for that explanation was “issues”, so don’t know what’s going on in a detailed manner
Vessel issues can nclude not having capacity to process produced water Volumes also and can u handle that much cost for disposal. This is hardcore economics. There are big changes come ng in taxes. No one can waste a dollar right now on anything that don’t pay. Hard decisions in the grease orchard
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