Comments - Market Enhancement Clauses and Deductions - GoMarcellusShale.com2024-03-28T23:15:14Zhttps://gomarcellusshale.com/profiles/comment/feed?attachedTo=2274639%3ABlogPost%3A338270&xn_auth=nocan any one give me a name an…tag:gomarcellusshale.com,2013-01-25:2274639:Comment:3914822013-01-25T03:28:00.827ZJeffrey L kerrhttps://gomarcellusshale.com/profile/JeffreyLkerr
<p>can any one give me a name and ph. no. of a water testing co. that is not in the pocket of any gas co.so I can get my well and spring tested be for the drilling starts. I an in Greene co PA. bottom of the county just north of wva. also is it better to have a 3rd party collect the water and test it or can I collect it and send it out to be checked ?? </p>
<p>can any one give me a name and ph. no. of a water testing co. that is not in the pocket of any gas co.so I can get my well and spring tested be for the drilling starts. I an in Greene co PA. bottom of the county just north of wva. also is it better to have a 3rd party collect the water and test it or can I collect it and send it out to be checked ?? </p> My royalty clause reads as fo…tag:gomarcellusshale.com,2013-01-10:2274639:Comment:3860142013-01-10T17:27:30.536Zmlbhttps://gomarcellusshale.com/profile/leomeier
<p>My royalty clause reads as follows ( no exact market enhancement statement, but it is a bit confusing to me ). " Lessee shall pay to lessor free of cost, a royalty equal to 15% of the gross proceeds received by lessee for the sale of all oil, gas or related hydrocarbons produced and sold from the leased premises. It is understood and agreed that to the extent Lessee sells oil, gas or related hydrocarbons to an affiliate, the price upon which royalty shall be based shall be the greater of:…</p>
<p>My royalty clause reads as follows ( no exact market enhancement statement, but it is a bit confusing to me ). " Lessee shall pay to lessor free of cost, a royalty equal to 15% of the gross proceeds received by lessee for the sale of all oil, gas or related hydrocarbons produced and sold from the leased premises. It is understood and agreed that to the extent Lessee sells oil, gas or related hydrocarbons to an affiliate, the price upon which royalty shall be based shall be the greater of: a) the price paid by the affilitate or b) the price that would have been received from a sale to an unaffiliated third party under a sales arrangement for like quantity, quality, term and at the same point of sale to the affilitate.:</p>
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<p>Section B is confusing to me and attys drafted this not the gas company so hopefully the language is good and does not allow for the "market enhancement" etc. It is with Chesapeake so I am wanting to look into it since they seem to be the only one making such deductions.</p>
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<p>Thanks</p> Mr. Clark - this is an excell…tag:gomarcellusshale.com,2012-10-31:2274639:Comment:3632912012-10-31T22:40:39.946ZG S Gasshttps://gomarcellusshale.com/profile/GSGass
<p>Mr. Clark - this is an excellent topic. </p>
<p>My take is that enhancing the value involves stripping higher value hydrocarbons (propane, butane, ethane, etc.) from the raw gas and selling the processed liquids (NGLs) for a higher value. If this increases the net value of the raw gas it will be good for Lessee and Lessors. If the Lessee tries to use the Market Enhancement clause to pass production, compression, dehydration, gathering costs to the Lessor, it is contrary to terms of the…</p>
<p>Mr. Clark - this is an excellent topic. </p>
<p>My take is that enhancing the value involves stripping higher value hydrocarbons (propane, butane, ethane, etc.) from the raw gas and selling the processed liquids (NGLs) for a higher value. If this increases the net value of the raw gas it will be good for Lessee and Lessors. If the Lessee tries to use the Market Enhancement clause to pass production, compression, dehydration, gathering costs to the Lessor, it is contrary to terms of the Market Enhancement clause. </p>
<p>Sounds like an audit is in order, if the lease provides for it. </p>
<p>Thanks for your efforts,</p>
<p>Gregory S. Gass, Certified Professional Landman</p>
<p><em>Working with Landowners to create win-win opportunities</em></p>
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<p> </p> any legal things going on to…tag:gomarcellusshale.com,2012-09-16:2274639:Comment:3459372012-09-16T18:37:59.548ZJeffrey L kerrhttps://gomarcellusshale.com/profile/JeffreyLkerr
<p>any legal things going on to stop the gas co. from raping us on deductions or are we screwed ??. market enhancement to me is only deductions to make gas worth more money. do we get a % of the increased money its now worth. if we are helping to pay for it we should get some money for the higher selling price.</p>
<p>any legal things going on to stop the gas co. from raping us on deductions or are we screwed ??. market enhancement to me is only deductions to make gas worth more money. do we get a % of the increased money its now worth. if we are helping to pay for it we should get some money for the higher selling price.</p> Excellent article. Once the d…tag:gomarcellusshale.com,2012-09-16:2274639:Comment:3456702012-09-16T00:41:43.459ZJim Litwinowiczhttps://gomarcellusshale.com/profile/JimLitwinowicz
<p>Excellent article. Once the door is open to their accountants to begin justifying deductions, they drive a truck through it to haul away all the money they can.If my royalty is 17%, I want 17% of the final sale price no matter what they did to get there. If they want to treat me as business partner and pro-rate cost deductions then I should have a say in operations and cost decisions.</p>
<p>Excellent article. Once the door is open to their accountants to begin justifying deductions, they drive a truck through it to haul away all the money they can.If my royalty is 17%, I want 17% of the final sale price no matter what they did to get there. If they want to treat me as business partner and pro-rate cost deductions then I should have a say in operations and cost decisions.</p> we signed a lease with Chesp.…tag:gomarcellusshale.com,2012-09-07:2274639:Comment:3419052012-09-07T01:40:06.522ZJeffrey L kerrhttps://gomarcellusshale.com/profile/JeffreyLkerr
<p>we signed a lease with Chesp. with the market enhancement clause. The land man told us it would be pennies on the dollar. I sure hope they are telling the truth but I think we are in trouble. I told them I did not like them having the right to take money when there is no way of knowing how much it would be and they said no more than 2,5 % . is there any way to tell if they are gouging us. Rice Energy gave us a better lease on the other prop. please keep me informed on this matter.</p>
<p>we signed a lease with Chesp. with the market enhancement clause. The land man told us it would be pennies on the dollar. I sure hope they are telling the truth but I think we are in trouble. I told them I did not like them having the right to take money when there is no way of knowing how much it would be and they said no more than 2,5 % . is there any way to tell if they are gouging us. Rice Energy gave us a better lease on the other prop. please keep me informed on this matter.</p>