Anyone lease with gulfport or rice?? Receiving royalties???

If anyone leases with Rice or Gulfport did you have "market enhnacement clause"?

Also are doing right by you with royalty deductions??

How were royalties calculated at Wellhead or ????????

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Permalink Reply by Kevin in Belmont County on April 12, 2014 at 7:41am

I have a lease with Gulfport Energy and have been receiving royalties on one well since August of 2013. I do have a "Market Enhancement Clause" unfortunately. As, I have written about on this sight in previous articles it was misrepresented to me, but none the less I am stuck with it for now. As to your question about, are they doing right by the deductions. I don't think anyone with a "Market Enhancement Clause" in their lease will ever know if they are being cheated out of royalty payments until the State of Ohio pass's new laws, that mandate detailed royalty statements are sent to landowners and there is a department set up to over see these wells by independent companies or a government agency to meter and audit these well sites. I don't think Gulfport is any worse than any other company out there, but from the sound's of some other articles on here, I think they are better than some of the other companies out there. After a long discussion with state senator Lou Gentile about a month ago that I also wrote about on this site. I don't think landowners should expect any help any time soon from the State of Ohio. According to Mr. Gentile there is nothing but political grid lock in the state capital when it comes to gas and oil. And to be perfectly honest I got the impression that the O&G companies are just pumping in to much money  to the politicians for any change to take place. I actually said that exact statement to Mr. Gentile and he said that he agreed. I think landowners in Ohio have a long road a head of us. This reminds me a lot of the coal boom here in South Eastern Ohio back in the late 60's and  70's. The coal companies made the huge profits and the land owners got the crumb's. Those of us who are old enough remember how it went. Just remember there is no O&G company that is your friend. They are in this to make money, and are going to do what ever it takes to make as much as possible and as quickly as possible. I hope this answers your questions and good luck!

Permalink Reply by Philip Brutz on April 12, 2014 at 8:42am

Kevin, do you have access to the well meter?  Is there any government oversight to verify the accuracy of the meter?  

Permalink Reply by Busy Bee on April 12, 2014 at 9:14am
. All of the sites I've been to have nothing for the liquids . Which has the most value . The truckers back up to the brine water or condensate tanks and load up and leave .I am unaware of any sites that are moving condensate or liquids via pipeline . I believe the methane is being metered at each site as it exits the production or containment area.
Permalink Reply by Kevin in Belmont County on April 12, 2014 at 10:13am

According to my lease it doesn't state that I do have any access to the meter. I requested that they send me out a detailed statement for all of the royalties gas, liquids and oil. It took them about three weeks and it was the only one I received and it wasn't that much more detailed. The next month they went right back to the general statement that accompanied the  royalty check with just basic stuff on it. This pad now contains four wells total. The other three have been producing since December of 2013 according to sources I have at the O&G company and I just received my division order for those additional wells on Monday of this week. Funny thing is this production unit has been established for over a year. Haven't received any royalties from additional wells since they have been producing. I honestly believe it's just a shale game, no pun intended. I think they pay the land owners when they are ready to and feel they have to. I think a lot of the first larger months of gas production from these wells go to fund the new well pads they are building and drilling new wells. Who's to regulated it. No agency looking over their shoulder, no accountability to anyone. And even though the drilling activity and fracking has been done on this well pad since December  2013 the pad is still manned 24/7. There are tankers going in and out of the pad daily but last month I was not paid for one drop of Liquid Gas. I called the company at the end of last month about it, and still haven't received a call back. Do I appreciate the royalties that I am making off of this well, you bet I am. Is the O&G company appreciative to the landowners that lease them their land to apply their new technologies to recover the gas and oil and make their profits. I don't know, you decide! I know this I am so tired of hearing people say, "well without this new technology your minerals would be worthless", well without our ground their new technology would be worthless. They should try putting up with the noise 24/7, the mud and truck traffic and all the other great things that go along with it.

Permalink Reply by adam sorell on April 12, 2014 at 11:26am

Kevin. How does royalties work out per acre for the group you are in??

Permalink Reply by Kevin in Belmont County on April 12, 2014 at 12:41pm

I honestly can't answer that question. They drilled the first well on the pad, and then came back and drilled the other three about 8 months later. Unfortunately when they came in and drilled additional wells on the pad the state regulations make them shut down production on producing wells. So it has been hit and miss on the royalties, some months the well was completely shut in, some months some liquids only were removed. The first couple months were really descent and then after that its been hard to say. I will say this, the royalties have been no where near  what the estimators said they would be. And supposedly the unit I am in is one of the better units in the state. Also don't let the test numbers of these wells convince you that they will be producing that much gas even before the decline curve. They have these wells restricted back severely. And our unit is not restricted because of infrastructure, the pipelines are there , and the facilities are on line to handle it according to Gulfport's last conference call.

Permalink Reply by Philip Brutz on April 12, 2014 at 12:38pm

Gulfport April Investor presentation with Utica decline curves: 

http://ir.gulfportenergy.com/common/download/download.cfm?companyid...

Permalink Reply by adam sorell on April 12, 2014 at 1:43pm

lol Kevin. C'mon i'm not your ex wife. I don't know who you are nor do I care. Yes you can answer it if you got a royalty check. I just want to know what a payment per acre can be even if it was non consistent.

Permalink Reply by Brent Laner on April 12, 2014 at 1:48pm

But Kevin may have an ex wife who does watch this site!

Permalink Reply by Philip Brutz on April 12, 2014 at 2:29pm
Permalink Reply by adam sorell on April 12, 2014 at 3:34pm

 Well i know he was upset paying  $181.25 per acre in market enhancement fees. :)

I wonder what percentage that was because obviously it can't be 20%. (lessors share)


 

Permalink Reply by Philip Brutz on April 12, 2014 at 6:33pm

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