Royalties- What's the REAL deal?

Let's hear from some royalty owners. What's the deal?

I have read and heard $2-$10 per day, per acre, per well.

Also been told a royalty owner could expect between $50-$1000 per acre per month.

The calculators online vary widely in their results.

Is there ANY reliable way to estimate royalty?

Anybody out there who is actually cashing checks and can offer some guidance?

Inbox me if you are uncomfortable posting. Thank you.

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Replies to This Discussion

Permalink Reply by bill h on May 6, 2011 at 2:52pm
About 8/day/acre/well is what we're getting; but remember, even if it doesn't decline initially, it will eventually.   This is probably one of the top 20 wells in NE Pa, but it's holding a lot of ground ...580 acres
Permalink Reply by Mat B on May 7, 2011 at 12:23am

how long have you been getting the royalties and has it declined any?

 

Permalink Reply by bill h on May 7, 2011 at 1:58am
Since last august and very little decline
Permalink Reply by SA Frank on May 7, 2011 at 12:48am

This might sound like a dumb question, but when the well is holding 580 acres, do the royalties get divided over the entire 580 acres or just what the well is under?  Meaning when they come back and drill future wells will the royalty for all go up again?

Permalink Reply by Farmhouse on May 7, 2011 at 12:54am

The entire acreage. If the unit is 580 then royalties are distributed to all landowners with acres in the unit based upon proportionate share of land within unit.

Yes this holds true for all future wells. 

Once you are in a unit it does not matter if the lateral (well) is underneath your property or not.

If you had 20 acres included in the 580 then you would receive royalty on your 20.

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