How much 'less than that?'
I'm getting a lot less.
The wells are shut in.
No relief it sight!
In Guernsey county Ohio
We are getting $ 1.56 for Oct...2015 Gas royalty
been going down since March
March was $ 2.56
and we have a NO DEDUCTION CLAUSE....
so im wondering why we don't get close to
what is shown on the Daily price deal....?
Guess they are just getting what they can.. as there is a glut of gas...
They pay us REAL CLOSE to what is shown up on the top of this site.... for the OIL..
but Gas payment is much lower then what is shown at top of this page...
but we aint complaining... didn't cost a penny to get the $.....
Just glad my Grandfather kept the mineral rights in 1931when he sold his farm. Yes it was ok until this year. I don't know why they are even selling it now.
The problem is that EQT and all other E&P companies have hedged their prices with long term contracts. For example, their dry natural gas may be hedged at $3. The reason is because it guarantees the E&P a minimum price value for its sales, and ensures a minimum revenue and takes away their risk. Even though the daily price has fallen to $1.40, or even if it falls to $0, the E&Ps will continue to produce, because they will always get $3. The royalties that a mineral owner receives are calculated on the daily price, even if it is $0. There is not a correlation to the price the E&Ps actually receive, through their long term contracts, called hedging, and the price you receive. This is a huge problem, and unless a person's lease contains a clause that ensures a minimum value for which a person's minerals can be sold, they basically can be taken for nothing.
Another comment I want to make, is that, as far as I am aware, all state's forced pooling rules do not protect against this scenario. That is, forced pooling always excludes the long term hedging contract values as the value to use in determining royalty payments. Forced pooling never protects a mineral owner by providing a minimum value with which to pay the owner. It says a minium percentage royalty, but never a minimum value of the gas. 12.5% of $0 is still $0. A proper lease should state that the royalty should be calculated on the greater of
a) the average market price closings for the month
b) the actual price of the minerals as sold by the E&P
c) the highest hedging value received by the E&P
In the above, one's minerals are ensured to be sold at a minimum value of $3.50, for royalty calculation purposes.
Are they taking deductions out..? that's on the RIGHT SIDE.. of your statement. under... "deductions"
Are they taking deductions out of your royalty ? Adam..
About $1.15 in western Pa for dry Marcellus from June through August.
Talked to EQT, about 10 days ago. Was told they're deducting "a minimum of 28%" from every royalty check for federal income tax. Also told me they send everyone a 1099 tax form (early next year) for us to submit to the IRS when we file our tax returns in April 2016, so we can receive a refund if 28% constitutes and over payment based one the persons tax bracket.
Received NO advance notice they were going to do this. As word spreads? Hope there's a firestorm of protest from landowners. Be interesting to see how many lawsuits are filed.