Can anyone explain the contractual authority Encana is citing in order to reduce our June 2018 check by almost $27,000 from what was due? The statement contains 23 pages of entry reversals and reentries for each product, liquid and gas, on each and every lateral, from 12/01/2015 through and including 12/01/2016. Each reentry reflects a LOWER price paid for the product than the reversed entry.
Conventional wisdom suggests that Encana knew, or should have known, the price they paid for the products at the time of sale and original payment.
We are a relatively small royalty owner. If Encana is doing this to everyone, imagine the millions/billions? of dollars they are raking in through this process.
Oil/gas companies make such adjustments all the time and it drives me nuts. As for your adjustment on that check, that's a lot and I would email them for a paper trail and ask them.
Thanks, Hale! They tried to tell me that, due to an error, some of the oil that went into the tank was not mine. When I asked him why the only item adjusted was the price, not the volume, he couldn't answer me. He then told me that he had more BAD NEWS, that they were going to adjust my upcoming October check downward to recoup 2017. I have never seen an adjustment to the price paid retroactive for two years, and they will probably try to adjust 2018 next year. I don't buy it! They knew what they were paid for the products at the time of sale!