ComplaintsforReliance Energy Inc

• Initial Complaint

  12/12/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I am a Royalty Owner in the ** Dollar 8-5-44 1MS Well. The well was been producing for almost 2 years and I have not received any Royalty Payments. I have signed and returned the Division Order that they sent to me. The owe me approximately $1500.

  

  Business response

  01/10/2024

  *********************** interest (which is being held in suspense under the name of *************************** Exempt Trust for ************************) is subject to a title requirement contained in a division order title opinion prepared by an outside attorney. The title requirement specified that a fully executed stipulation of interest be obtained by 16 persons who owned a total of a 1/32 interest in NE/4 Section 5,Block 34, T-4 N, T&P ***** Survey, Dawson County, *****.
  
  A stipulation of interest and division order was submitted to ********************* by letter dated April 6, 2023 along with the other 15 royalty owners and ***************, et al, and were requested to execute the stipulation of interest and the division order and return both to the *******. **************** executed the division order but not the stipulation. None of the other affected royalty owners have executed the stipulation of interest document at this time. We have discussed this matter with **************** numerous times by telephone.
  
  *************** and the other 15 owners have not been paid due to their interest being subject to a title requirement affecting himself and the other royalty owners.
  
  Reliance Energy Blue Bayou, LLC sold all of its leasehold interest in the Dawson County, ***** properties covering *********************** royalty interest, to SM Energy, **** which closed on June 30, 2023 and we will provide a copy of this summary to SM Energy, **** who is responsible for handling this matter in the future. We informed **************** of this ownership change by telephone on October, 2023 at which time we also advised **************** that the suspended funds had been turned over to SM Energy, ****

  Customer response

  01/10/2024

  Complaint: 20996589
  
  I am rejecting this response because:  The Stipulation of Interest that Reliance prepared was full of errors.  Three of the persons referenced in the Stipulation are deceased.  It could not be signed by any of the 15 due to the errors.  I volunteered to assist Reliance in preparing the Stipulation and was never contacted by them.  They called me and informed me about SM Energy.  During that telephone call, they apologized for not preparing the Stipulation and told me that I was on my own.  I talked with SM Energy and they said that Reliance should have prepared the Stipulation and that they were not responsible to prepare it.  Reliance had over 1 1/2 years to prepare the Stipulation and failed.  All we are asking, is for Reliance to step up and prepare the Stipulation.
  
  Regards
  
  *********************

  

  Business response

  01/12/2024

  Reliance Energy Blue Bayou, LLC had assigned the responsibility to ******* and **** ******************* (an independent ******* firm) for obtaining the curative for the *********************, et al, title requirement and all other curative matters in the project in Dawson County under the NE/4 Section 5, T-4N, T&P ***** Survey, Dawson County, ***** and surrounding lands.  ********************* contacted Reliance Energy Blue Bayou, LLC on August 9, 2023 for assistance after he felt that ******* and **** was not resolving the matter to his satisfaction. Reliance closed on the sale of its leasehold interests to SM Energy on June 30, 2023.
  
  Curing the title on this title requirement is substantially more complicated than *************** suggests by merely revising the stipulation of interest. **************** identified what he thought were 5 parties on the stipulation that might be deceased. We believed there were only 3 deceased parties. Title examiners (whether landmen or attorneys) are unaware of persons who die outside the county and whose probates are not placed in the county record or where trusts are formed or revised and those trusts are not of record.  
  
  To resolve the matter, successors in title (presumably heirs of the deceased)would need to furnish either a certified copy of a probate showing how the estate was distributed or provide an affidavit of heirship executed by a bona fide disinterested 3rd party who knew the decedent and family history. Reliance had not received either document from **************** or anyone else prior to selling the properties to SM Energy.    
  
  As the suspense funds have all been forwarded to SM Energy, ***** and in an effort to assist ****************, we contacted and referred this matter to ********************* with SM Energy for their further handling.

  Customer response

  01/13/2024

  Complaint: 20996589
  
  I am rejecting this response because:  Reliance Energy Blue Bayou, LLC had hired ******* and **** ******************* to prepare the title and Stipulation.  They had 1 1/2 years to prepare it and they did not.  Reliance Energy should have hired someone else or completed it themselves. I was in contact with ******* and **** ******************* during that time and they assured me that it would be completed.  I was never referenced to Reliance Energy or I would have contacted them sooner.  I disagree that it was a difficult assignment to prepare.  I spent several hours on the internet and found 95% of the information that is need to prepare the Stipulation. The remaining 5% would require a *******.
  

  Would Reliance Energy by willing to work with me to prepare the Stipulation?  I think that would be fair since they hired an incompetent company in ******* and **** ******************* to prepare it.
  
  Regards,
  
  *********************

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