I'm looking at various well production rates and it appears they're broken down into three parts (or more?).

MMcf for natural gas, liquid natural gas, and oil (condensate?).

When "guessing" royalties do we add each individual one, or do we just enter the MMcf and forget about the rest? It's a bit confusing because if I enter them in separately the numbers are BIG.

To add to my confusion I was told they're just throwing the Natural gas away, which I don't feel is true?

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Tons of variables to consider.  Price per MCF of nat gas, price per bbl of oil or condensate and price per bbl of NGLs are all different, and each needs to be taken individually to get the entire picture.  NGLs are subject to processing and in the Utica the facilities are nowhere near full capacity yet.  That means some companies are going with full ethane rejection (which means leaving it in the stream of gas and not separating it out) and that can cause royalties to plunge.  As for throwing NG away, that's happening a lot in the Bakken due to a lack of infrastructure to get the NG to market.  That's less of a concern here in the Appalachian Basin where there has been NG production for decades and there is better pipeline takeaway for the gas.  There's no easy answer to your question because there are far too many externalities to examine.

If a well produces all 3 types you get paid for each. You would get paid oil price, gas price, or NGL prices per barrel. Your royalty is derived from your amount of acres in the unit divided by the unit size x your royalty percentage on your lease. The number you get will then be your decimal interest in the unit.
Shouldn't forget the now famous 'Market Enhancement Clause' either.

Also an important and operative word in your post is the word 'exactly'.

'Exactly' how royalty calculations will be performed ( IMHO ) would be very much 'lease dependent'.

As another has written above ( and it seems to me also ) there are 'Tons of variables to consider'.

Maybe as infrastructure develops / comes on line, royalty calculation methods, especially for NGLs, may even change - don't know - but it seems plausible.

Good luck in your endeavors.
How exactly does a rainbow work? How exactly does a posi track on a 59' Plymouth work? It just does....
As I understand one has to be in a drilling unit to receive royalties...the particular lease included in the drilling unit will pay royalties based on the number of producing well(s) in that unit. Can someone explain to me....in the situation where a drill pad is placed on one's land.....is the land owner entitled to royalties that come only from the well heads originating from that pad site for which these horizontal wells are assigned to the leasing unit or is the land owner paid royalties for all O & G produced from the well heads regardless if
the horizontal wells are assigned to the drilling unit or not?

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