Permian is doing the same thing to us - charging expenses and now cloaking them by having their ‘purchaser’ charge them. Expenses are disallowed under our agreements. No expenses means no expenses.
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Helen - We have the same problem. Can you share your attorney contact info, or at least the firm name?
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Be aware that some oil companies have amended sales contracts to set sales point at the central collection facility or wellhead, instead of selling at the tailgate of the gas plant. The resulting contract sales price is net of transportation charges to get gas to the plant and net of the plant processing costs. Explicit purpose is to get around many cost-free lease provisions. One company bragged about this in an SEC filing as a way to increase revenue. So it will depend on the exact wording in your lease, such as does it reference the sales point or does it require a determination of the gross price at the processing plant regardless as to where gas was sold?
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Thanks Dennis. Its a great deal of money that Permian is taking from us when they are not permitted expenses against our royalty on the vast majority of our wells. They are only complying with selective provisions of agreements we have - very selective. Its the same thing others are seeing.
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Nicholas C. Miller with Graves, Dougherty, Hearon & Moody, located in Austin, Tx. The attorney who represented Permian is Robert G. Hargrove with Davis, Gerald & Cremer, also, located in Austin, Tx.
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Thank you for the recommendation.
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We have had great success negotiating with Energy Companies, being represented by Patrick John Flueckiger of Austin who advertises on this forum.