That is my only hope! That hopefully if he wins he will surround himself with good people. Really wish the Republicans had been able to put up a different candidate I could get behind...
There are a million variables that make it impossible for any of us to know if you are getting what you should have.
Lease terms are the killer, but you also need to figure quantity and market price, which will be lower than what is quoted on the top of this page.
There are only two ways I know to verify your royalties are what they should be, a lawyer or CPA who have folks who know how to audit your statements.
It may not be worth it to you if you have minimal acreage.
Even when oil was much lower there were folks around here (eastern Guernsey county) who were getting $400 an acre per month, with net leases.
Domestic Oil & Gas Companies have a history of short changing landowner royalties.
Chesapeake leads the way and the rest follow.
Find a Class Action lawsuit against your producer. If you can't find one, file one.
People will talk, but very few will take legal action, which this calls for.
I noticed the Friends of Oil & Gas are commenting on this discussion. Ignore them, they throw up a smoke screen to keep landowners from taking legal action against their employers.
I read your comment and went back and read the comments previous to yours. I am not able to pinpoint who the "friends of oil and gas" are.
Would you please enlighten us sir ?
It is worthwhile to remember that eastern Guernsey county is heavy on the oil. Even the old Oxford leases (my benchmark for a lousy lease) paid gross on oil, so the terms of the lease has less effect in an oil-rich area. It seems like it is when one gets into gas and wet gas that "enhancement clauses" can really come into play for the producing company.
I also heard numbers (from reasonably reliable sources) coming out of eastern Guernsey when oil was at $100. Some of those numbers hit $2,000/acre for the early months.
I heard numbers higher than that for our area back when oil was cranking.
I am trying to help people understand that whatever your particular situation is that it may not apply everywhere. In most cases there are so many variables with lease terms and production volume you just can't assume that one thing holds sway over an entire area.
You are correct about the oil here. The royalties we are seeing reported on this site could be in "dry" gas areas from wells where production was choked down because of the very low prices for natural gas within the last year.
Gas has gained a third in value from what it was within the last year if I remember correctly.
I was one of the few who stayed away from the old Oxford lease, finally having to tell them to quit calling me and stopping here at the house.
Yes, there are a lot of variables and it seems like it can change a lot within a relatively small geographical area. And gas definitely seems to be the royalty killer because of processing/enhancement fees and deductions.
I have to agree, $400/ac (I assume you are talking about monthly) seems like a lot for these prices even if you are in the best of areas. Doesn't seem like it would have been a stretch 2-3 years ago though.
It was in the Pora unit. There are many around here who have dome very well. When prices were higher people were getting much more. Many posted the amount per acre a while back, I think on the Millwood township thread.
We'll see, I have acreage in a producing well and will be getting a check around Christmas.
I have friends whom I trust in the same unit who have different lease than mine, we will share the information when the time comes.
Lease terms are a huge determining factor in all of this.
The guy I quoted in an earlier comment, I trust him to have told me the truth, but I didn't see it with my own eyes, he could have fooled me but I doubt it.
Additionally, what unit are the folks in who you are familiar enough with to know their royalty amounts per acre ?
This information is most helpful, but only as a starting point. There are so many variables that go into royalty payments.
Can you ask these folks you are familiar with what their last check was worth in dollars per acre ?
I am assuming you are both in Guernsey county, I am too, in Millwood township on Putney Ridge road.