Many of you have been collecting royalty payments for oil and gas for several years. Some of you are about to receive your first royalty payments from the oil and gas company. Whether you have an old “shallow” oil well or a more profitable Marcellus or Utica well, this is your money. Do you have the faith and trust in the producer that you are being paid fairly? What happens when the producer takes advantage of your trust?
At ShaleAdvice, we help mineral owners and landowners resolve oil and gas royalty disputes and ensure that you are being paid accurately. Our commitment to you is to ensure that you receive the money you are owed for ALL minerals extracted from your property.
Too many times we see mineral owners assume that an oil or gas company is dealing with its royalty owners in an open and fair manner. However, companies unfortunately routinely underpay oil and gas royalties by deducting unreasonable marketing cost, transportation costs and even sell your minerals below market value to one of their subsidiary companies.
At ShaleAdvice, we have the experience to challenge the big oil and gas companies. We are the only landowner oversight in the industry that can make sure your next royalty check is accurate. If you believe you are not being paid correctly, give us a call and let us help you.
Are You Being Unfairly Compensated?
Can You Read Your Royalty Check?
Oil and Gas Royalty Underpayment Issues — The message has been sent and it is loud and clear. Landowners Beware!! In the last several years there have been a number of unprecedented profits in the oil and gas industry, and you the royalty owner are still very much at risk of being unfairly compensated by those Operators and Producers who routinely fail to pay your correct and fair royalty.
Producers make underpayments to royalty owners for a number of reasons and sometimes it may just be an error in data entry. Other times it is simply because of the complexities involved in your oil and gas lease as well difference in leases from other landowners in your Unit. Producers sometimes blatantly fail to pay royalties for months and you are no wiser. In either case, you the royalty owner have an absolute legal claim and right for compensation and damages.
Those in the oil and gas industry have an implied duty and absolute responsibility to behave as a “reasonably prudent operator” under all circumstances. However, Producers fail to obey many express and implied covenants in their leases, operating agreements, and unit agreements, which may ultimately result in gross underpayments being made to the royalty owner. Sometimes the Producer allocates certain costs against your royalty payments that are absolutely prohibited by either law or contract.
What Happens When the Producers Fail to Act Responsibly?
- Your royalties worth thousands or millions of dollars go unpaid;
- Precious and valuable minerals may be stolen;
- Your minerals, oil and gas are being sold to a subsidiary company at less than market value, or the costs associated with your sale are overinflated; and
- State Law holds that you have the sole responsibility to make sure you are being paid correctly. If you fail to act, you may be barred from receiving what you are entitled to.
Other Common Issues:
- Joint Venture and Other Authorization for Expenditure Contractual Obligations
- Arms Length Oil, Gas and Liquids Sales and Pricing
- Producer and Lease Requirements
- Legal Interpretations for Your Lease and/or Addendum
- Natural Gas, Oil and other Biproduct Volumes and Calculations
- Heating Factors
- Mathematical and Data Entry Input Errors
- Unitization/Pooling Computations Specific to Your Lease and Wells
- Post Production Deductions
How Can We Help?
The ShaleAdvice team has been dedicated solely to the Landowner. We do not work for the oil and gas industry. In fact, we have represented hundreds of landowners in negotiating leases, pipelines, royalty audits and litigation on other matters in Federal and State Court. We are dedicated to protecting your rights as a landowner.
The ShaleAdvice team consists of highly experienced trial lawyers, accountants, engineers and other professionals who have the experience to protect your interests against the giant oil and gas companies. We make it a level playing field.
Call Today For a Free Royalty Evaluation and Let us Help You Make the Right Choice.