joe pierson
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Any one receiving royalties without any deductions?
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Just wondering, I know people have leases that state no deductions, but is anyone getting a royalty check = royalty rate * gross market proceeds, period!Continue

Started this discussion. Last reply by Schnoozie Jun 14, 2012.

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joe pierson replied to greg's discussion 'Royalty Language'
"True, if the gas company adds gold dust to the raw gas increasing the sale price from $2 to $2000/mcf you are free to ask for 18% of the $2000 instead of 18% of $2 without regard to it's whether it is fair or not. In any case, as…"
Aug 5, 2012
joe pierson replied to PHILIP ANGELO's discussion 'Deductions from royalty check any Idea????'
""Would someone knowledgeable please post whether (or not) the state of PA does today check the accuracy of meters on gas wells." No they don't, but state gas leases have audit provisions that resolve this issue by obtaining…"
Aug 1, 2012
joe pierson replied to PHILIP ANGELO's discussion 'Deductions from royalty check any Idea????'
"John, Wellhead price implies you take the sale price and "net back" to  calculate the wellhead price. So they sell the gas for $3, cost $.50 to process, so the price at the wellhead is $2.50 Then one could argue the…"
Jul 31, 2012
joe pierson replied to PHILIP ANGELO's discussion 'Deductions from royalty check any Idea????'
"later on the Friendville states "Sales Price shall mean the price received by Lessee for its Oil and Gas sold in an arms-length transaction." So there is a conflict in the lease."
Jul 31, 2012
joe pierson replied to PHILIP ANGELO's discussion 'Deductions from royalty check any Idea????'
"Philip, The deductions are a fixed cost per 1000 cubic foot of gas produced, typically 50 cents to $1.00. Since gas is very low now, selling under $1 at some places in the country, that represents 50% or more of the total gross money gas…"
Jul 29, 2012
joe pierson replied to Ron Eiselstein's discussion '"Force Pooling, Has Its Time Come?"'
"Perhaps another way to look at is how many are integrated using forced pooling in other states, here is force integration hearings list for one month in arkansas, some interesing reading, the first one listed is as good as any (read the resume of…"
Jul 23, 2012
joe pierson replied to Frank Nesmith's discussion 'Chesapeake renegotiates leases'
"They have done this before, in NEPA, signed leases that required full development, and then quickly renegotiate a the lease for a single well and 2 square mile units. Mostly they are forced to into these leases by landowner groups and can't do…"
Jul 17, 2012
joe pierson replied to Buell Well's discussion 'Famous Buell well about to be shut down!!! Chesapeake doesn't own horizontal drilling rights!'
"The topic is Buell, your comment was about Buell, about transferring over mineral rights, so why are you bringing up the Jewett Sportsmen Club. Keep on one topic please if you can. What I am in favor of is whoever owns the surface rights and…"
Jul 12, 2012
joe pierson replied to Buell Well's discussion 'Famous Buell well about to be shut down!!! Chesapeake doesn't own horizontal drilling rights!'
"You must be a big Hugo Chavez fan if you believe mineral rights should be automatically taken from it's evil "corporate owner" and given to someone else."
Jul 12, 2012
joe pierson replied to shawn's discussion 'Difference between Net and Gross Royalties'
"perhaps a reading comprehension course is in order"
Jul 12, 2012
joe pierson replied to shawn's discussion 'Difference between Net and Gross Royalties'
"Gross means before post processing deductions, Net means after post processing deductions. Gas Constituents have a lot of post processing costs, therefore they want you to help pay for them. 18% Gross is pretty good.  "
Jul 9, 2012
joe pierson replied to Patricia Patterson's discussion 'Would You Sell Your Land & Minerals? And If So How Much Would You Take?'
"One would guess one makes an risky investment like that to get returns much better then a conservative 5% over a 30 year period. Maybe 10%-12% is the goal? Otherwise why take the risk? If so 39K invested for 30 years at 12% = $1,168,436, so…"
Jun 28, 2012
joe pierson replied to Patricia Patterson's discussion 'Would You Sell Your Land & Minerals? And If So How Much Would You Take?'
"3mil/76 = 39K/acre, must be a bunch of doctors who don't know what to do with their money"
Jun 28, 2012
joe pierson replied to Donald's discussion 'selling unleased utica shale acerage. how to determan price?'
"Yes the basic decision is do you sell now at a lower price or wait until a nearby well is drilled, the risk is if a nearby well is drilled and comes up unproductive your out of luck.    The 20K to 30K deals between companies usually…"
Jun 25, 2012
joe pierson replied to Donald's discussion 'selling unleased utica shale acerage. how to determan price?'
" It depends is there a nearby well (within 5 miles) that is producing? If so you need to look at the production rate. Mineral buyers will severely discount an area that is not currently producing, no matter what the maps say, way too much…"
Jun 25, 2012
joe pierson replied to pamacraw's discussion 'Question about the drilling process'
"the drill moved from one site to the other, very slowly, all the wells were then "zipper" fracked one right after the other, I don't know how successful it all…"
Jun 18, 2012

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What is your role in the Marcellus?
Landowner
Why are you here?
Networking
Which state(s) are you following?
Pennsylvania
What shale plays do you follow?
All Shale Plays
Tell us your story...
got a mail saying they want to put a pipeline through my property

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