Hello everybody. I took over ownership of an interest in the Crawford B.W. 1 well located in Panola County (API 36536308) back in December of 2020. To date, I have not been paid royalties for any of the production associated with that well. Despite multiple attempts to work with the operator (Permian Natural Resources) I have been unable to figure out what is keeping them from remitting payments to me. The operator has been stringing me along since mid 2021 saying things like “I’ll get back to you soon”, and “we will be processing a payment soon”. As of December 2022 they have stopped returning my calls/emails all together. I sent a formal request for payment via certified mail outlining my intent to file suit and still haven’t heard anything. I figured I would post a message here to see if I could find any information related to this operator and the Crawford B.W. 1 well.
Does anyone here have experience with this operator?
Is there anyone on here that owns an interest in the same well? If so, who remits royalty payments to you for the Gas that is being produced.
A company named Orion Pipeline that purchases the gas however they are not responsible for remitting royalty payments. I found this out by calling them directly.
I’ve already contacted an attorney and am going to likely be moving forward with filing suit I just figured I would post this to see if anyone had any additional information about Permian as a last ditch effort. I really appreciate the help here!
RRC shows the total production reported from that well since 12/20 as 7,692 mcf of gas and 8 barrels of condensate. You didn’t say the type or size interest you took over but it doesn’t look like a lot of money would be involved even if you hold the full royalty interest. Is it possible your share doesn’t meet the minimum for receiving a monthly check?
Hey dusty, I calculated the revenue owed using average monthly prices along with my interest %. The amount isn’t crazy big however that isn’t the point right (>$1000.00)? Even if my interest doesn’t warrant receiving a check every month, they should still be remitting my interest when it accumulates. Up to this point they haven’t paid me anything nor do they seem willing to follow up with me to satisfy their obligation.
Did you acquire a non-op working interest or a mineral interest? If WI, then your have a well DOI for revenues which is reduced by the related royalties for the underlying lease and reduced by your share of the operating expenses.
You listed the operator as Permian Natural Resources. Is the operator you’re dealing with Permian Natural Resources or just Permian Resources?
I am having trouble with the operator Permian Resources in Midland, Texas. 6 months ago I purchased my brother’s interest in some property in Reeves County, Texas and have not received any royalties on that purchase. I sent all of the documentation of the purchase to Permian Resources and it was recorded with the Reeves County clerk. Historically, the monthly payments have been around $500-600 a month. I have called them and emailed them and they are basically unresponsive even to urgent matters. I live in Phoenix and I’m wondering if I’m going to have to drive to their office in Midland, Texas to get this resolved or if I’m going to have to hire an attorney to assist.
I’ll be interested in hearing the outcome of your lawsuit and the attorney that handled it.
Hey David. Sorry to hear you are experiencing similar issues. I don’t think we are talking about the same operator. Permian Natural Resources seems to be operating out of Tyler Texas and Austin. Their operator id is 655818. I checked the OG directory available through the RRC and found Permian Resources Inc out of midland with a different operator id (655835). As far as your issue is concerned, it sounds like your best bet would be to contact an attorney within midland. Their first step would probably be to send a formal demand letter. Hope you have better luck with that than I did lol. I’ll post an update when I have more to share.
As Dusty1 said, 7692 mcf of gas over about a year of ownership would be a very small check, depending on the royalty interest. It also looks like the well was Shut In in February 2023.
Thanks for reiterating that. As I said, they owe me for over 2 years of production up to this point. Even if it was a smaller amount than it is, it doesn’t justify them not holding up their end of the lease agreement.
Where did you see that this well was shut in back in February? The RRC still shows it in “Producing” status.
Looks like Permian Natural Resources took over operations in January 2021. Former operator reported gas sales to TX Comptroller (CONG system on-line) through December 2020. Permian Natural Resources has not reported any gas sales from January 2021 forward. Perhaps it is being combined in a report with another lease for severance tax purposes, which would not be correct handling.
ADS-OG Thanks for your response. Yes, I found out that you’re dealing with a different operator. Permian Resources, the operator I’m dealing with, is different than Permian Natural Resources. Permian Resources based in Midland, Texas is a publicly traded company on the NYSE.
I hope I can get this resolved soon. I’m trying to figure out the next steps to take to get it resolved.
I will be very interested in hearing the outcome of your lawsuit. Keep in mind that this topic will automatically close in 3 months. Be sure to post the outcome of your lawsuit in either the Panola County, TX or Law and Legal areas of the forum.
We have wells in Reeves County that were purchased months ago by Permian Resources. Centennial was the original driller and payor on these wells. So far we have not had any problems with Permian Resources regarding payment. Hopefully your woes don’t bode ill for other owners. Have you tried certified letters RRR? For an attorney, if thats the route you go, there is a directory on this site which lists several attorneys.
Rick5. Finally received clarity from Permian Resources on my royalty payments. It was the result of lack of communication on their part. I finally got a definitive answer. The issue had to do with separate decimal percentage line items instead of a single combined percentage. Not everyone is an O&G analyst including me, historically with Colgate, now Permian Resources, some of their monthly statements that include adjustments for several months are obtuse. Everything appears to be ok now.
