Greetings. As a long-standing NARO-TX member and an associate CMM, I have an odd situation. Our 1998 Kleberg Co. TX lease has been assigned a few times and lease terms allow us to consent. In January 2020, we signed the consent to assign our lease, with active production, to ORO Resources in Houston. In June, we received the first royalty statement and check. As is often the case in assignments, “Gathering & Processing” deductions were made even though our lease clearly does not allow for these deductions. Previously, each new operator quickly corrected this error once it was pointed out in writing, with a copy of the lease.
I immediately drafted a letter to ORO Resources and sent it via Certified Recorded Receipt mail. I also emailed a copy of the letter to ORO. I never received reply nor was the Recorded Receipt returned. I phoned ORO only to get voicemail. Researching the address, it seems to be an office only for receiving mail. I started a trace with USPS who still have not found my Certified letter. In July, after leaving various phone messages, I eventually had a return call from an accountant with an outside accounting firm used by ORO. I was assured that if I sent him a copy of my letter and a PDF of the lease, he would pass it on to the ORO landman.
Again, I never heard anything. When I received a royalty check in September, deductions were still being taken. I phoned the accountant to discover the firm no longer did accounting for ORO. He gave the name of a woman who was now the accountant. Also gave me the name of the landman. I phoned both and left voice messages and have never received a return call.
The royalty amounts are small, so it probably isn’t worth paying attorney fees. Any advice?
I would call ORO and ask to speak to their Division Order Analyst versus an accountant or landman.
They are the guys that set up the pay decks in the system usually and will mark the deductions. Sometimes just knowing which department to ask for is helpful so you don’t get as much of the run around.
Thank you. I actually have been calling ORO since June and NO ONE returns my calls. I have been through this with 4 other assignments with no problem. But ORO do not have a real office and they outsource the land department and revenue accountant. It is essentially a two man company who do no respond to royalty owners via phone, email or Certified Letter. I DO appreciate your input!! Thank you
A simple google search will produce their website.
ORO Resources LLC - Texas Secretary of State - Agent for service of process - MOMIN HUSSAIN SYED
This is a small company and likely uses outside service companies for accounting, division orders, etc. It has three people listed under management, including Momin Syed. No landman is listed. You may want to re-send the certified letter to Momen Syed at both the corporate address and at the address for service of process. According to DI, ORO has not reported any production for Kleberg County wells since March 2020. You may want to check on RRC for current production for your well(s) to make sure that your lease is still in effect.
Thank you - I’ve had the website since January. I appreciate the tip about writing to the listed address for Agent for Service of Process. I’ll see if it is different than the one I have. I have check for production on the RRC and the lease is still in effect. Thank you so much.
I pulled up some information on the RRC. It looks like they filed items with the RRC using Tin Man Energy Services as their Agent. Perhaps they are outsourcing their Division Order Department through them as well? You might try calling them - if they are filing regulatory items for them with the RRC they may have incentive to keep them in the good graces.
I googled their website and they are located in Austin and there is a number provided on it. Its worth a shot.
UPDATE!!! I finally spoke with the revenue accountant and was able to email a copy of the lease and my letter to her. AND she forwarded it to one of the principals who just phoned me. They are a newish, startup company and COVID hit them hard this year. So, with perseverance and help I have finally made contact!! Thank you all for your input.
Thank you!!! I knew the Hive Mind would find out more than I could. I will put Tin Man Energy Services in my file, but the good news is I had a long conversation with one of the ORO owners yesterday afternoon and fingers crossed, now have the contact I was looking for!