How are royalties figured...
I have heard from people in areas that are getting royalties already that some are getting $300-400 or more per acre for royalties. I know the leases my family has says we get a % of royalties...so I'm trying to figure out how this works out.
Let's say your royalties are 18% net. Do you get 18% off the $300-400 per acre people are getting or is the per acre amount already calculated with the %? I'm just trying to get a better understanding on how this all works.
Views: 7844
Replies to This Discussion
-
Permalink Reply by Darlene Newton on
-
Kind of like the people that wanted this Obama Crap care! So I completely understand what you mean! Cause people that voted for Obama should have looked into his policies better huh?
That's right Chip most Americans do not have the money to fight these big companies! I also think it is fraud to have linemen sell policies without a license! I also believe that it is fraud intentionally redefine the words in our contract! And I do believe this effects people that are afraid! It is fraud knowingly selling a lease such as this to older people that have no clue what their signing. It really is fraud destroy water for that I m pretty positive
You sir continue to give excuses for the Gas Companies
-
Permalink Reply by Darlene Newton on
-
You are GD right I want them to fix it and they GD will! Whether by my word or whether by time, it will not be long though! The great thing is where I live the basin of a large body of water was fracked and now Chip the geysers encircle the whole boy of water!
Also people that did not sign and refused sir got treated like shit so you do not want to go there! I supported them as they did I for their decision. Neither I nor they deserve to have our water contaminated!
The Federal Government owns the water Sir I just live around the water!
-
-
Permalink Reply by Darlene Newton on
-
Greedy, I rented my homes to people that were being charged 6000 a month, they were greedy! I did not kick my tenants out to get big money Sir ! I have names and numbers if you would like to speak with them. No I am not a church Sir I am a business owner, a land lord and person who cares!
-
-
Permalink Reply by bo boboski on
-
"this is business ,not church...the parties are motivated by money,not morals." Are you talking bout gasco's ,or our Government?
-
Permalink Reply by Darlene Newton on
-
Yes I did Chip so I guess that gave them permission to ruin hundreds of peoples water?
Did you vote for Obama Care? Cause if you did that means you should have read the law better? If you did you are as stupid as I am Mr Decker!
Yes I was raised a church goer sir! I was raised with morals, and a soul!
Keep making excuses Chip , keep telling yourself it is OK for them to lie and steal oh and sell a botched health care that could, never be made! That is what I like about you Chip you support the gas companies I just cannot wait til Ohio realizes what I did!
Unlike you Sir I signed to give opportunity to my fellow neighbors whom had No Job, I did NOT give them permission to ruin my water and steal everything they promised sir!
-
Permalink Reply by Darlene Newton on
-
No but I like pizza!
-
-
Permalink Reply by MJ on
-
This is getting fun again! Bring on Frank Dux and GG. Where are you at Jeffrey - or Rick in NOBLE County. Nothing personal - entertaining in fact. I know some folks are getting "screwed" - but look at it in a different way if you can. Some big farms got rich from up front bonuses, some will be "well off" or even richer when royalties come. None of you "earned" the monies that came your way. Most foreign countries do not allow citizens to own mineral rights under their properties. None of you could have ever accessed the "minerals" 10,000 feet beneath your land anyhow. Farming is Hard work plain and simple (I know personally). Some of you won the lottery - god bless!
-
Permalink Reply by george m. on
-
Let's cut Darlene some slack! Retroactive "enhancement deductions" should be outlawed...period. JR, your a straight up guy for pointing this out.
Secondly, let's all get real. We, Ohio landowners do not own 10,000 acres. We have NO bargaining power! We can not shop our prospective deal (lease) to competing companies! It is not a free market. As they said in the Godfather, "they make you an offer you can't refuse".
Thirdly, after production starts, no matter how good a lease you have, audit everything. All "mistakes" the co. makes will NEVER be in your favor...including PU size, boundaries, relative value of the hydrocarbon mix, volume of each component produced, enhancement deductions (current or retroactive) etc. Trust but verify...it gets a little expensive.
Even with a good (lawyer prepared) lease, it may not be enforceable...unless you own 10,000 acres with a pugh clause.
It's not a free or fair market ...DON'T PRETEND THAT IT'S A FREE MARKET. Without new laws, do the best you can.
-
Permalink Reply by Kelly Young on
-
I was asking a legit question. Sorry everyone is so upset by this topic. Geez
-
Permalink Reply by george m. on
-
Chip,
Signed a GOOD lease with an independent.
Co clearly violated terms of production unit clause.
Enforceable but costly
No remedy so far.
Will you represent me for free?
BTW co. filed for bankruptcy.
Motions being filed in Federal Court
It's like doing business with Enron
TRUST BUT VERIFY
-
Permalink Reply by Alida Scheiderer on
-
I decided to write an opposite viewpoint. So many times, we focus on what's wrong in this world, instead of what is right, and it causes one to lose sight of the important things in life.
So read their version first, then mine. Mine is called: Enjoy LIfe & Be Thankful for What You Have!
TAXES - by Unknown
Tax his land,
Tax his bed,
Tax the table,
At which he's fed.
Tax his tractor,
Tax his mule,
Teach him taxes
Are the rule.
Tax his work,
Tax his pay,
He works for
peanuts anyway!
Tax his cow,
Tax his goat,
Tax his pants,
Tax his coat.
Tax his ties,
Tax his shirt,
Tax his work,
Tax his dirt.
Tax his tobacco,
Tax his drink,
Tax him if he
Tries to think.
Tax his cigars,
Tax his beers,
If he cries
Tax his tears.
Tax his car,
Tax his gas,
Find other ways
To tax his ass.
Tax all he has
Then let him know
That you won't be done
Till he has no dough.
When he screams and hollers;
Then tax him some more,
Tax him till
He's good and sore.
Then tax his coffin,
Tax his grave,
Tax the sod in
Which he's laid...
Put these words
Upon his tomb,
'Taxes drove me
to my doom...'
When he's gone,
Do not relax,
Its time to apply
The inheritance tax.
Accounts Receivable Tax
Building Permit Tax
CDL license Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Excise Taxes
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax (currently 44.75 cents per gallon)
Gross Receipts Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges IRS Penalties (tax on top of tax)
Liquor Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Personal Property Tax
Property Tax
Real Estate Tax
Service Charge Tax
Social Security Tax
Road Usage Tax
Recreational Vehicle Tax
Sales Tax
School Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal Universal Service Fee Tax
Telephone Federal, State and Local Surcharge Taxes
Telephone Minimum Usage Surcharge Tax
Telephone Recurring and Nonrecurring Charges Tax
Telephone State and Local Tax
Telephone Usage Charge Tax
Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax
STILL THINK THIS IS FUNNY?
Not one of these taxes existed 100 years ago, & our nation was the most prosperous in the world. We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids.
What in the heck happened? Can you spell 'politicians?'
I hope this goes around THE USA at least 545 times!!! YOU can help it get there!!!
GO AHEAD. . . BE AN AMERICAN!!!
ENJOY LIFE & BE THANKFUL! by Alida Scheiderer
Enjoy the land,
on which you stand,
Many have died and have been dead,
for you to sit at a table,
for which you are fed.
Enjoy your tractor,
Be joyous for your mule,
Because without it,
the wilds rule.
Enjoy your work,
Enjoy your pay,
You work for what
you earn each day!
Be thankful for your cow and goats
Be thankful for your pants and coats
They traveled the seas on someone's boat.
Enjoy your ties, your shirt
Enjoy your work, and the dirt
Enjoy your tobacco, cigars, beers, and still
because it'll give you lung cancer while others foot your bill
Enjoy your drink and time to think
And stop complaining and putting up a stink.
Be thankful for your car
and smooth roads to ride
And those bridges, true and tried.
On which all cars shall glide.
Enjoy life and all you have
Let all others know
That even if you wanted, you can't take
it with you, you know.
-
Permalink Reply by James Young on
-
I think the original question was figuring Royalties.... it's pretty simple, .... and then not. First you need to be in a declared "Unit".... and that can be anything from 400 to 1280 acres in total size, and your acreage in that unit, can be all or any part of your property, I've seen some landowners having 300+ acres, down to just one-quarter of an acre, in a unit. Then this is multiplied by your percentage of royalty as a percentage number. 12.5% or 20% or whatever.... Now comes the fun part, "where" the gas is sold and how much they can deduct for.... transmission costs etc...... so in the end it is NOT a set rate by any means .... and varies greatly every month.... I am in a well unit shared by two Gas companies, supposedly on a 50:50 basis according to the "Division Order" , yet my checks and the volumes of gas reported monthly on my checks and the amount reported to the State, have no continuity with each other at all, nor does one company EVER move 50% of the well production, usually only half of what the "Main" company reports, and pays less $$ per MCF than the "Main Co", so, hell, I don't know what to tell you "I get per acre" it varies every month and every year. I can tell you the well production will go down greatly in just 12 months, and the price can vary from $1.65 to $4.25 per MCF and good luck figuring that all out..... But still all of it is $$$ I never saw coming when I retired 5 years ago. A good point is, at Least for now, in the USA, property owners can have some of the "Underground Pie". As pointed out, in most countries the Government owns the "sub-surface" assets. I believe even in Canada, the "Crown" owns most "sub-surface" assets.... Good luck to you folks...
Top Content
Latest Activity
© 2024 Created by Keith Mauck (Site Publisher).
Powered by
