Greetings everyone. I am a new member of this group and have a question pertaining to the Wilmington Field. Are any of you out there contracted with Warren Resources? How do you feel about the 15X increase in net expense deduction without any discussion, accounting justification or notification? I think something is fishy here given that the only semi logical reason they provided is increase in Ad Valorem taxes over the past 4 years (the longest they can try to "recover" back money per California Statute of Limitations on written contracts) ...but we are protected by prop 13. Anyone have any comments?
Yes, I am. I do not know what PMB is. What is your interest in this topic?
I would verify the ad valorem tax rates and assessed values if there is any question or inclusion of those expenses that have been passed on to you. I have seen plenty of values (ad valorem) on oil and gas protested by the companies and subsequently lowered. Most of that information is available publicly, some easily accessed online. I would be curious if they ever pass along those savings. I would ask your operator to explain the net expense deduction and how they accounted for that on your payments.
Hello, all – I have the same type of question. Warren has now survived their bk and kept our 20+ leases in Wilmington. We are seeing “deductions” of 60%! No explanation other than line item for deductions. Yes, we’re grateful they’re pumping again, but our checks are pitiful! What can a layperson do when something just doesn’t seem right? Thanks in advance for any tidbits of wisdom offered!