Sory David, I do not want to share personal information about myself or others who I have spoken with on here, but the area I am talking about/am most familiar with is Londonderry Twp
I have been getting royalties for just under a year. The wells are about 50/50 Rice/Gulfport. When it started prices were higher and wells not choked (at least not as much). Royalties started at about $1200/acre/month. Now with the current price and choke I got $407/acre last month. I am with the Smith/Goshen group and have no deductions.
That's good news. Is your lease gross at the well head with no deductions?
What is the name of the well that you are on?
You have a no deduction lease as do I. Can you please tell us if this lease has prevented the producers from shorting your royalty by taking deductions ?
Sorry guys...when this post was active I was on vacation and the site wouldn't work right on my phone. Then we had the site go down. I am in the Mohawk Warrior unit. The no-deduction clause was very specific as to what COULD NOT be deducted and so far so good. There has never been a deduction on my statements although some months I question the price/mcf. Seems really low, like almost $1.00 under Henry Hub.
I just received 1/2 of the next month's royalty and prices are up some. Back to about $600/acre.
Thank you, I am sure that some folks are abused due to poorly written leases and some folks are just plain abused.
But, contrary to what we see written here constantly, usually by the same guy, I talk to royalty owners who are satisfied that they are getting what they are supposed to get.
A week or so back I talked to a guy and told him of my plan to hire legal representation to verify my royalty matches my lease term.
He told me that he liked my desire to be proactive but to wait and see if Chesapeake takes the deductions or not because it is his opinion that they wont because of the wording in my lease.
I fear that there is much disinformation on this site. I believe that royalty checks are affected more by market pricing and volume than by theft. I hope I am right, I am not eager to take on my producer but will if they steal from me. Thank you again for the information.
Are your royalties gross or net?
Which month is that for? I verified with both Rice and Gulfport that I will be getting royalties from both companies, which I didn't know beforehand...so I am hoping it will improve the checks some. I was not part of the Smith-Goshen agreement though.
This month's royalties will be for May's production.
In 2013 a newspaper article said that a Utica Well costs $13 Million to drill and was being paid for in the first year of production. Lets say your well made 13 Million a year in 2013 and 2014 before OPEC created the oil price drop.
Multiply your owner decimal times 13 Million and you will have an idea of how much you should have made in 2013 or 2014. You can cut that in half for 2015 and 2016.
Some landowners have stopped receiving a royalty due to an overpayment by the producer that has never occurred in Ohio. They simply figured out they can take more since every shale play state government has decided there is no such thing as theft when dealing with Oil & Gas companies.
What will happen to Our Democracy when corporations in other areas figure out that theft against US Citizens is now a Civil Matter with no consequence?
If only it were that simple Ron....half of these writers know NOTHING.....they are writers....one month they can be writing for Rolling Stone and the next month Car Craft.....ANYONE spending 13 mil to drill a well would be out of business.....