Caustic Burno
Well-known member
TCRanch":eag3x9uv said:Interesting turn of events (the condensed version):
Over the past couple months we received 3 additional tax statements for oil royalties. I paid them (that's what I do when I receive a bill/statement) but my husband questioned the production. Turns out we were charged for literally 10,000 barrels more than we received; their reasoning was "projected production", based on the prior year and assuming some of the wells would be re-fracked. What the what?!? Hubby spent quality time on the phone with the county Treasurer and Thursday we received a refund check for a little over $4K. I was gone all day yesterday but Hubby got a call from the CFO of the Oil Co, thanking him because they also received a refund. So now they're grateful and have more incentive plus extra $$$ to fix/clean up the one well, fix one of the electrical lines and install the roads. We'll see how this plays out.
And on a side note (shameless self promotion), the oil company names all their wells after a song. I have no idea why. Evidently they like me and named one of the wells Lil' Red Kevette. Woo-hoo, I'm being immortalized by a combo of fracking and Prince . Unfortunately that well is currently out of production - but at least I can occasionally look at the sign and get a cheap thrill.
That is a scheme of the tax district.
They know on a gas well 50% of the production is in the first year with diminishing returns over the next 9 years. The average oil well in this country produces 16 barrels per day as well. The well may produce over the next couple of decades very few will equal the production of the first
year even on an accumulation basis.
Seems like I have to fight the idiots every year.
The biggest PITA is an old well on my grandpas place that been producing since the 40's. lucky if you get a 250 dollar royalty check a year.