leases here within Dominion's storage field were amended from 640a. to unlimited pooling for shale development. the older leases date to the 1930's. long history and many leases were consolidated by CNG. the language varies with even some geological language descriptions. no one could afford to litagate Dominion in some few cases where depth may be an issue. Dominion will get a much higher royalty from the shale producer as part of an agreement, then pass a minimum through to landowners heavily deducted i would suppose, just as an accounting pass through. those of us outside the storage field, with OGM's feel fortunate.
Chesapeake has been treating us better in west central Bradford count,pa.they streamlined their transport costs so now our deducts are not nearly as high as before.july production check from chessy was around 2.42minus deducts.
NO,THE ACTUAL PRICE PER MCF BEFORE DEDUCTIONS.
What percentage does Chesapeake take out for deductions? I have heard it can be as much as 40%
actually ,it goes as high as 60 % sometimes;usually when the gas price is exctremely low.however,this past winter,even w/ deductions,chk came out price wise ahead of all other gas companies.we averaged around mid to upper 3.00/mcf range for winter gas after all deducts were taken off. we were paid a gross price of around 4.00-4.50 for winter gas.like i may or may not have said before,currently our deducts range from 18% to 26% depending on volume of production and price.my opinion was all the lawsuits and settlements thrown at them plus the better financial situation after crazy cowboy mclendon was out of the company [the founder and former ceo that spent money like a fish] changed our situation for the better.so,never give up the david vs goliath fight against these big guys.