It’s ironic. These people sold out their own communities to get that fracking cash, and now they’re getting screwed anyway. Sounds like music business accounting!
Over the last decade, an untold number of leases were signed, and hundreds of thousands of wells have been sunk into new energy deposits across the country. But manipulation of costs and other data by oil companies is keeping billions of dollars in royalties out of the hands of private and government landholders, an investigation by ProPublica has found. An analysis of lease agreements, government documents and thousands of pages of court records shows that such underpayments are widespread.
Thousands of landowners like Feusner are receiving far less than they expected based on the sales value of gas or oil produced on their property. In some cases, they are being paid virtually nothing at all. In many cases, lawyers and auditors who specialize in production accounting tell ProPublica energy companies are using complex accounting and business arrangements to skim profits off the sale of resources and increase the expenses charged to landowners. \
Deducting expenses is itself controversial and debated as unfair among landowners, but it is allowable under many leases, some of which were signed without landowners fully understanding their implications. But some companies deduct expenses for transporting and processing natural gas, even when leases contain clauses explicitly prohibiting such deductions. In other cases, according to court files and documents obtained by ProPublica, they withhold money without explanation for other, unauthorized expenses, and without telling landowners that the money is being withheld.
You are dealing with an oil company racket. Anything other than dollars per unit gross is malpractice. No arbitration. Penalty provision for any understatement of output is loss of license, equipment title forfeits to land owner and the entirety may be resold by land owner. I recommend jurisdiction in the courts of Ecuador.