outrageous royalty

We live around the Somerton area of Belmont county, they will start drilling soon. Talk around here is that we should expect to get $500.00 an acre,they that is the least we will get for the royalty paid from the well,but this is just a rumor, talk around here. Is this crazy or what, has anyone heard of this payout?

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Permalink Reply by evan on September 16, 2013 at 1:19pm

Mill

Permalink Reply by evan on September 16, 2013 at 1:21pm

Guernsey county millwood twnp. Just north of quaker city

Permalink Reply by David Cain on September 16, 2013 at 2:08pm

Evan,

Are you in the McClain unit? How/when were you notified that you were included?  Do you know how large the unit is planned and/or the number of wells planned to be drilled?   I think I am about 4 miles SE of you on Barker Rd.  It will be interesting to see if Chesapeake can do as well as Gulfport and Rex have in the area.  I hope they hit a great one.

Permalink Reply by evan on September 17, 2013 at 2:37pm

Yes i will end up in the mcclain unit once things are worked out. Last i heard they wanna do 8 wells . Not sure the exact size of the unit but it ll be pushing 1000 acres possibly. Not sure how many eclipse and antero leases they picked up

Permalink Reply by Jim Hujer on September 16, 2013 at 12:53pm

What type of well are you tied into? Utica,Clinton,Point Pleasant? What is the current price of gas? Are u signed with Gulfport? Also, are they killing you with deductions? Just wondering, I am currently waiting for a new Clinton Well to finsh up and start producing? Do you know how much your well is producing per day/per month? Thanx

Permalink Reply by catt on September 17, 2013 at 1:32pm

Where is the Mc Clain unit located? Any news of any other permits in that area, North or east of Quaker City?

 

Permalink Reply by David Cain on September 17, 2013 at 2:20pm

Catt,

The McClain well is supposed to be about 3 or so miles north of Quaker City.  I think it is close to the intersection of Putney Ridge and 513.  This is a Chesapeake well.  And of course Rex is drilling the J. Anderson wells (5 of them) east of Quaker City near the intersection of 265 and Shannon Run.  The Rex wells should be drilled and may have been fraced but I'm not sure.

Permalink Reply by evan on September 17, 2013 at 2:39pm

Mcclain well is on the north edge of millwood township butting up against oxford. They built their road off of putney ridge and yes its 3 miles north of quaker

Permalink Reply by evan on September 17, 2013 at 2:43pm

Catt, chesapeake is also drilling another one about 5 miles north of Quaker. Yockey well. I think they have 3 permits so far . Only about 2 miles away from mcclain well their drilling that one now. Another one i just heard about is a mile west of Quaker city off of Yoker Valley Road. This one may be Eclipse

Permalink Reply by catt on September 17, 2013 at 3:46pm

Thanks for the info Evan........I will be looking on the ODNR map again.

 

 

 

 

Permalink Reply by catt on September 17, 2013 at 3:48pm

Thanks for your info too, David!!!!

 

Permalink Reply by Andrew on September 17, 2013 at 6:17pm

To calculate your share of revenue from well production, input numbers into this equation:

([your mineral acres]/[total unit acres]) X [your lease royalty as a decimal] = your "Division of Interest" (DOI) or "Net Revenue Interest" (NRI).

For example, if you have 60 net mineral acres (how many "full" acres of minerals you interest is equal to) in a 1,200 acre unit, and you have a 20% royalty, your DOI would be:

(60/1,200) X 0.2 = 0.01000 or 1% of the total revenue from well production in any given month. Your DOI should match up with any division order or royalty statement your lessee or well operator sends you.

Unfortunately, figuring the amount of your actual royalty check is not as clear cut. There are a number of variables such as the price of gas, the actual amount of product sold (which is usually slightly less than what's "produced"), severance taxes, and any post-production costs your operator may deduct from your royalty. This information should be on your check statement, but being able to understand it, let alone independently verify it, can be difficult without lots of experience or professional help.

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