Is anyone having any issues with PetroQuest regarding deductions, suggested over payments from 2015 that will now be deducted and "re-booking" of gas prices?
I have seen special deducts in excess of 40% of my gross revenue, and am just wondering is anyone else is having "challenges," and/or finds this "interesting?"
PetroQuest is deducting upwards of 42.5% of my gross revenue for TRNS (WI/RI) which is defined as "Transportation cost incurred after the gas is rendered marketable". I talked to PetroQuest and they said that this was for storage costs. This annoys me but I'm not sure what, if anything, can be done about it or even if it is a legitimate expense to be passed on to royalty owners.
Thanks for the response. I have a gross proceeds lease. My Exhibit "A" specifically references the Mittelstaedt v. Santa Fe Minerals case as the basis. They have simply refused to reply, and are now changing the terminology of their deducts to reflect transportation costs only. But, the amounts of the deduction are still exorbitant.
This may not be totally relevant to your issues of "in excess of 40%", etc., however, I have a current concern with PetroQuest on my previously producing well. My last royalty check was in late 2015, and quite niggardly in amount. Upon recent inquiry why my royalty payments had stopped I was given the explanation that my well had been "SHUT-IN." I had no clue what that meant. The explanation from the Operator was that adjacent fracking could cause the potential for SLICKWATER to migrate into my well preventing further production. Now I am told the reason for SHUT-IN is because another driller is INJECTING waste water nearby. This all "begs the question" so I am now contacting OCC to gather more information as to whether either operator is in OCC COMPLIANCE of their rules......... I have noted other Forum postings complaining about questionable royalty payments, and excessive
deductions.........1Leta