Hi folks,

I was wondering if people have started getting royalty checks in Bradford yet. My husband and I own 25 acres and have negotiated 20% royalty along with a $5500 bonus. We signed last year. How much will we make in royalties? I know that there are many variables but I'm just looking for a ballpark. I know there are online calculators but I have no idea about some of the variables I need to input. If anyone can help me out with info, please let me know. Thanks!

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Want to hear a funny one?

I haven't had a royalty check from CHK for 2 months so i emailed them about why.

Now I only have 6 acres in a plot with one producing well and with them taking 85% or more for "expenses" it doesn't amount to much anyway.

They answered by saying when I have $25 in the account they will issue a check. Currently my 2 month total is only $1.58.

That's right one dollar and fifty eight cents! 2 months on a 15% royalty is $1.58

I just got a Staoil check for $27.00. Same well.

Thank you Gene Yaw and Gov Corbett!

This is a crime

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that's enough to make you sick, Hard to believe but I see it in black and white

Philip,

That's 62% in deductions for compression, gathering and transportation.  What was the wording in your original lease for royalty and what is your royalty percentage?

Does the PA Supreme Court understand the impact of their ruling regarding "at the wellhead" royalty?  Apparently not.

How long have your wells been in production?

Todd

The royalty 12.5% the lease is about 13yrs old. landowners need to do something about this, if our elected officials don't want to help we need to let them know at the polls!!!!!!!

I agree 100 percent Philip.  I'm also HBP with an old 12.5 percent lease "at the wellhead".  Still waiting on pipeline however.  But my property is in WV and apparently "at the wellhead" wording is supposed to be gross based on the WV Supreme Court's decision.  Any deductions must be expressly written out in the lease for deductions to be taken.  There are a few states that interpret "at the wellhead" this way which, to me, is the correct interpretation. 

sure makes sense to me.  i am going to get letters off to my representatives...gotta get this fixed in a good way, for sure.

What the heck is the production in mmcf coming out of that well Stan? And what is CHK selling it for - a nickel?
Is CHK actually deducting 85% in post production costs??

My last CHK check was from 11/22/13. Production was from July, Aug, Sept. Prices were 3.345, 2.923,3.085 for those months.

Volume was 14910, 15279,10129 for those months

The gross amount was 234.95 and my check was 26.91. That figures out to be 88% in deducts. The deductions were coded as Gathering and a little for third party.

My Statoil check of 11/22/13 was only for Aug ans Sept. Prices were 3.024 and 1.999, better than CHK.

Statoil's volume was 7957 and 5273. (I assume you add this volume with CHK's to get the well production?)

The gross amount from Statoil was $49.80 and the net was $29.96. That was a 40% deduct.

That's unbelievable Stan and I'm sorry to hear it - I recommend that the landowners of Bradford County appeal to the PA Supreme Court regarding these deductions.  Maybe you all could sign a petition.

What is the wording in your royalty clause?  Does it expressly allow post production costs and deductions?  Or is it an old "at the wellhead" royalty?

How long has your well been in production?  Only producing about 650 mcf per day or so it looks like.  So, are you choked way back or has it been producing a really long time?

Thanks for posting,

Todd

Question: how successful are "no deduction clauses" in leases? Do they prevent deductions, are they ignored or are there creative ways around the clauses?

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