Has anyone had accounting issues with White Star Petroleum? Ever since White Star Petroleum acquired property in Payne County, OK from Devon Energy, I have issues that I have been unable to resolve. I am unable to speak with anyone and my only contact has been emails. I received a letter saying I was over paid for two wells and I could send a check for the over payment or net any revenue due to the over payment. I chose to send a check for the over payment. None of the monthly statements show the reimbursement payment and they say that this is an internal accounting issue. Any suggestions to resolve this problem would be appreciated.
Hi Sylvia:
You will have to be patient with them, but they should get you corrected in 30-60 days. I am a working interest owner in 8 wells in Payne County and it takes them awhile to get up to date on accounting issues.
As a word of advice, NEVER send a check to an O&G company for overpayment of royalties. ALWAYS have them net your account back until even.
Todd M. Baker
Hi Todd, Thanks for your response. The repayment was in August of 2018 and my concern now, which they have not addressed, is that I will receive a Form 1099 that does not reflect the repayment.
It distresses me to hear scenarios like this one. A manual repayment of an over-payment is the most difficult type of “receivable” processed in an oil and gas revenue department. Have you checked you bank account to see if the check has cleared your bank? If not, it could be sitting on someone’s desk uncashed because they don’t know what to do with it and are afraid to ask.
Owners everywhere need to understand that oil and gas companies all across America are losing well-experienced, capable professionals in both Land Administration and Accounting departments due to retirement. They are hiring replacements with very little if any prior experience in doing their job. (I, myself, very recently retired from my career, but I’m toying with the idea of going back to work for at least a few months because I’m getting separation anxiety!)
But in this particular case, White Star Petroleum filed for bankruptcy last May. You need to talk to someone directly, no more emails. Consider sending one more email, this one demanding the name and direct-line number of the person you are ping-ponging emails with, so you can talk to them directly.
You need to do this as quickly as possible. At the end of September, 2019, White Star Petroleum announced that their bankruptcy trustee has sold the White Star assets to Contango Oil & Gas Company. You’re about to have a real mess on your hands if that repayment doesn’t get credited properly to your account right away. I am familiar with the people working in Land Administration and Accounting at Contango. You need to act quickly. If necessary, contact the bankruptcy Trustee’s office–you can Google the bankruptcy article and find out who the Trustee is, and contact his/her office. Good luck.
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