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Permalink Reply by Dexter Green on July 16, 2014 at 10:37pm

You don't want a landman estimating royalties.  With enough data points, an Excel spreadsheet, and an hour or so of time you can make as educated of a guess as any landman.  Now getting a full mineral appraisal?  That's a horse of a different color.

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Permalink Reply by 0ym9x5ag7ury2 on July 16, 2014 at 10:58pm

Drb,

     If you think you are getting shorted on your royalties you need to do some research on your producer. When he sells your "products" his Marketing Company will see an increase in profits. They are selling low, paying you royalties then selling at the fair market value. You also will be overcharged for gathering line use and everyone knows it's going on. I just got charged an Adjustment where my producer took large volumes of NGLs, I paid the tax on each gallon, then they charged me 14 cents a gallon more than likely to pay the processing fee on the NGLs that they sold and didn't include us landowners. That's a bold move, but they don't have to worry, no one is watching.

It appears that no one can touch an Oil Company that has Landowner Royalty Theft as part of their business practice.Too Big To Prosecute might be the right phrase.

The governor of each state that finds an unethical oil company operating within it's boarders should deny them the privilege of doing business in that state. Stealing from landowners is breaking the law, and you know what happens if you break the law.

Ensuring the O&G companies obey the laws and pay fair royalties to the landowners is the only way everyone will get a share of the wealth from our minerals.

The unethical producers are getting bolder in the Appalachian Basin. We'll soon find out if anyone is willing to take them on, or will they allow the O&Gs to work their Unethical Business Practices then pay only what the judge orders in a few years. Meanwhile your minerals will have been stolen. Your potential wealth will have gone to Oklahoma and once again to the lawyers (asbestos, tobacco you know wealth transfer drill).

This has been going on for years, Check it out.  Help! I'm being ROBBED!!!

That said, I have some ideas of who you can call for help.  mrrxtech_yah@yahoo.com

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Permalink Reply by Zack Smith, Geologist/Appraiser on July 24, 2014 at 9:32am

First question, what is the purpose of estimating your royalties? If you're doing financial planning that includes placing that income into an LLC, FLP, etc. for favorable tax treatment the IRS expects a Real Estate Appraisal, because in most states oil, gas, and minerals are considered real estate. Typically, your attorney would find someone qualified to do this for you as a vast majority of real estate appraisers have no clue when it comes to minerals, especially if you're producing or near producing.

I'm a geologist who does real estate appraisal in OH, PA, and NY, so if you needed a full appraisal I can help with that, but estimating your royalties would be based upon an analysis of your lease, local production records, price forecast of the hydrocarbons (which will change with your location), etc. Best simple way to do that is to find a landowner's group near you and ask what their $/acre payments are.

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