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# Royalties >>> How much per acre in a monthly royalty check

How much per acre in a monthly royalty check ? Certainly it would depend on a few or maybe many factors ..... but give examples if you have them please.
If someone has the figure for drilling in a section ( say about a square mile or 640 acres ) and how many wells were drilled ( horizontal or verticle ) we could then do the math for the size of our acerage included in the section. Or for others who may own many sections etc.

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Found a calculator >>>> new question >>>> how many wells are typical per section
What I have been seeing is that units usually are drawn for 6 wells, 3 north and 3 south. However some units could be drawn with fewer planned wells. I know of several that have 3 wells planned for the unit. Also what I see is that the gas companies are not drilling all the wells at once. So if you are in a unit with 6 planned wells, you wont be receiving royalties on all 6 at once (because they are not drilling them all right away). I have noticed that if it is a unit planned for 6 wells the Gas companies are drilling 2 at first (1 north - 1 south)

There are to many variables to your question. First royalties all depend on your acreage in the unit and the size of the unit. Second what royalty figure did you sign for in you lease? 12.5 % is the state minimum, however some people have negotiated as high as 20%. Third it depends on the price of gas.

check out www.rlstore.com - very informative with many maps and learning tools.
Im confused by your question Tom. What is "optimal at the transmission line" . Are you referring to having a pipeline run through your property? If so my understaning is that they will pay per foot.
Here is a realistic example from NE Pennsylvania:

160 acre unit
15% royalty
5 MMCf/day initial production
\$5.00 gas price

Using any royalty calculator:

Monthly income for the entire unit is \$110,250
Divided by 160 is \$689/acre

Remember that royalties can increase if the price of gas goes up,
and WILL decrease WHEN the production declines.

Hope this helps
Cool I like your answer. We have been waiting for so long it seems. Thanks and Happy New Year
Is that per well also?
.
An example from Chesapeake territory:

If the acreage is 640 acres
6 wells at 5 MMCF/day=30 MMCF
15% royalty
\$5.00 gas

\$684,000/month for the entire unit
Divided by 640 is \$1070/acre.

Hope it helps
So the final number for the landowner would b e \$1070/acre times 15% equals \$160.50 per acre a month. Is that correct?
If you go by what hunter said, it is 1070/acre/month for the landowner. That is only if you are in a producing unit with 6 wells producing 30MMCF though.
That's correct, most good production horizontal wells with a "conservative" size unit should provide the landowner with \$800-1000 per month per acre in the unit. Keep in mind that figure is for the first month, it will be less after depending on the decline of the well, or maybe more if the price of natural gas takes off.

thank you hunter!  I'll post my numbers as soon as I get a divsion order.  We have I assume 3 wells in our unit since there is a north unit and a south unit and we are in the "north" unit.

I think hunter777's figure might be a little high per acre seeing as gas prices have fallen since his post in April of 2010. We have 42 out of our 96 acres in a drilling unit with five producing wells and our first check for production in Nov. and Dec. of 2011 was in the \$20,000.00 range which translates into about \$240.00 per acre per month.

Of course the more acreage within the unit will increase you per acre rate.

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## ShaleBiz.com

### 50+ acres of minerals for lease in Belmont County, Ohio

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