Royalties

After seeing someone who is getting more than 1,000 per ace in West VA I am wondering why we are not getting anything similar. My royalty is about 100 per Acre and Shell has not paid anything for June. I am still waiting for an answer as to why.

Also it appears as Shell is taking out Operating cost but not telling anyone. We may start a class action law suit against them as they have been stealing from us from day 1

Any information regarding royalty amounts per acre and drops in payments especially from Shell would be appreciated

John

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Permalink Reply by Philip Brutz on July 4, 2014 at 4:55am

John, which state, county, shale formation are you in?  How long has your well been producing?  What is your decline rate?

Permalink Reply by jason irvine on July 4, 2014 at 5:20am
What is you royalty percentage as well.
Permalink Reply by John Tropea on July 4, 2014 at 5:25am
The county is Tioga PA. As in the group name. Royalties have been nearly the same since day 1 a year or so ago. The rate in getting us 12.5%

I'm curious if the wells are choked due to limited infrastructure. I'm also curious if others have issues with Shell who claims accountants go errors causing to take back payments. That is really operating cost they are stealing from everyone
Permalink Reply by Trapper on July 4, 2014 at 5:35am
I know of a Sportsman club around Evans City in Butler County PA that is getting the same with one well. They are with Rex I believe.
From what I have gathered , 100-150/acre per well may be average.
I wish my 51.64 acres would get drilled. I would be thrilled with five or more grand a month coming in!
The poster from WV also has a reported 11 wells on his pad......do the math.....
Permalink Reply by John Tropea on July 4, 2014 at 11:15am
We have 4 and 2 not fracked yet. Doing math if there was 12 wells it would be 300 per acre
Permalink Reply by Tom R on July 4, 2014 at 5:52am

Keep in mind that the West VA poster is in a unit with 11 wells which produce wet gas, which has more value than the dry gas of Tioga county. I don't know their production volume but they are in the Wetzel county area which generally has very good production rates. As far as I can tell, your are in the Vandergrift unit which has three producing wells reporting a total of 4.28 MMCF per day for the second half of 2103. I'm in Bradford county, my unit's production was 2.88 MMCF per day in that same period. My average royalty for the last year was $79 per acre but have an 18% royalty rate with the market enhancement language. So your $100/acre at 12.5% does not seem out of line. Can't speak to issues with Shell as they are no part of the companies with interest in my unit.

Permalink Reply by Tom R on July 4, 2014 at 6:17am

Meant to say the WVA poster is in Marshall county, got crossed up with another train of thought.

Permalink Reply by jason irvine on July 4, 2014 at 9:45am
I believe most wells in the area avg. 9 to 10 MMCF with 500 to 800 barrels of NGL a day.
Permalink Reply by robert g. weaver on July 5, 2014 at 4:15am

Ours has went way down, about $50. an acre now, chspk is paying really low, but I read where they were in debt and using our royalties to bail them out with high production costs. Stat paid us almost as much as Chspk did this month , Chspk checks way down.  We are in n.e.  Pa. , we signed for 12.5 and with production cost being taken out, our only hope is Pa. can pass the house bill which will give us our 12.5 % but this remains to be seen.  Most of these companies are crooked and take and take is my opinion of them!

Permalink Reply by John Tropea on July 5, 2014 at 4:31am
I heard pay passed a bill where they can take operating cost. Our lease has some wiring that says they can not take out cost. Insure Shell is taking out something.
Permalink Reply by Tico on July 5, 2014 at 7:25am
You guys are lucky,, we have production for two years and we are lucky to get $10 an acre per month with chesapeake with 15 per cent,,,,, some times we get $30
Permalink Reply by bungalow_steve on July 5, 2014 at 9:12am

"After seeing someone who is getting more than 1,000 per ace in West VA I am wondering why we are not getting anything similar."

 

This is like asking why my fishing hole in PA sucks but the one in WV is so good.

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