How are royalties figured...

I have heard from people in areas that are getting royalties already that some are getting $300-400 or more per acre for royalties. I know the leases my family has says we get a % of royalties...so I'm trying to figure out how this works out.

Let's say your royalties are 18% net. Do you get 18% off the $300-400 per acre people are getting or is the per acre amount already calculated with the %? I'm just trying to get a better understanding on how this all works.

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2z248p19vqnh9Permalink Reply by 2z248p19vqnh9 on November 20, 2013 at 9:16am

Marcus - the market goes UP & the market does d-o--w---n...right? Last I knew it does. Last I heard, there's a DEAL out there EVERY DAY (just ask your buddies in the G/O Biz...). Hey - good point, glad you made it. WHAT an I referring to?...*gold's present DISCOUNTED(?) price...

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IF you did this (GOLD backed electronic currency backing by your LOCAL 'bank'), ***25% lower due to present gold position...it possibly could be a GOOD TIME to position wouldn't you say?

Yes, GOLD BACKED currency via electronically traded funds.

IF it is only 'electronically traded' anyway - why NOT have YOUR 'FUNDS' (be they electronic, paper, or gold - sounds like 'rock, paper, scissors GAME, eh?...let's play!) BACKED by GOLD & SILVER - held by YOUR personal, local credit union. At least you'd know what you have - not JUST paper or electronic currents....

-ROCK (GOLD) - paper (dollar bills) - scissors (electronic transfer?)-

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WHY wouldn't this work, Marcus? Especially given today's turbulent uncertain REALITY...

*GOLD safety net - cushion in case 'the sky DID fall'...why NOT have your cake & eat it too? wouldn't you have more peace of mind IF there WAS something 'valuable' backing you up, Marcus?

*you WOULD have your currency just as it presently is - 'dollar bills & electron transfers' - just as they presently are...only NOW you would have a SAFETY NET - your 'local bank-backed SAFETY NET'...where IF you had to, you could 'tfs' - touch it, fancy it, savor it...AND if the 'sky is falling, the sky is falling' EVER did happen - *at least you'd know where you'd stand.

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WHAT is wrong with that? You'd know what you had, where you stood, be confident in this...SECURITY.

--------IF you would decide to 'keep things just as they are' within your own bank - fine. BUT, IF you DID want to have your 'money' (funny money? - credo? beLIEve??? I do - NOT!, do YOU???) REALLY be 'money that 'stands firm'...let GOLD back it! Somewhat like the difference between a 'A' share or 'B' share mutual fund...

WE are Americans. The 'City of London' does NOT (whatever it is that they'd like for you to beLIEve) BE an...A-men-I-CAN!

AmerICAN! (change the 'r' to 'n' - Amen!) This CAN work.

As one light lights another, nor grows less - so nobleness enkindles nobleness. Just open your eyes, Marcus. Change IS the only 'constant'...YOU of ALL people should conceptualize this. Who is...

Change is GOOD! It would just be bringing things back to where they belong. Let the City of London KEEP their 'bond agreements' with the world currencies...but let US(A) get back to what is right.

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on November 20, 2013 at 9:30am

You're basically describing Bitcoins.  Go check out the volatility of that market then get back to me.

Permalink Reply by Ed Strawn on November 23, 2013 at 3:23am

If we spend our time making accusations against one another or being too dramatic, we lessen our chances of forming a coalition to get things done.

Meanwhile millions of acres are getting destroyed because the topsoil is not being saved and put back in place, sloppy work and lack of inspectors is creating oil spills, gas lines that may leak, and  noisy compressor stations are installed almost anywhere,

One huge problem with our country is that money and idealism seem to rule over commonsense. Our quality of life is more important than money or pretending to be right.

Right now we need to make sure we have a good lease before signing.  Go to an oil and gas attorney, study their proposals for the addendum, and add other things that are important to protect your property and interests. Some of them work by the hour, and the difference they can make for your interests can be enormous. Don't get in too big of hurry to sign.  Signing bonuses act as a carrot to keep you from asking for more important things, like royalty increases or post production cuts. Include clauses to protect your land and where things are placed on your land. Your children and those who follow you need for you to be a good custodian of that land, so that it can be productive for future generations.

Life is not just about money, but more about responsibility. So whether you are a landowner or energy company, you and your children have a stake in protecting our beautiful precious country.

Permalink Reply by Bill F. on November 23, 2013 at 4:04am

and there are also many landowners who realize they have gotten screwed by all the hype from the NG industry .People have to realize it's not all they claim and for some the nuisances outway the gain ......the more you know the more you see what the game really is .....All Industry !

Permalink Reply by Susquehanna Sally on November 16, 2013 at 11:28am

Oh my... hahah...I am as pro responsible gas production as they come....leased but always leery.

Permalink Reply by shawnalee pettinger on November 15, 2013 at 5:04pm

I'm have signed a lease also.  It expires in 2015 initially with an option on their part to extend the lease for an additional 5 years.  I live in Rumley Township Ohio.  It is completed surrounded by wells!!!  From what I understand of the lease I am to receive $1000.00 yearly even if no wells are drilled, producing, caped and so on.  I have not received anything.  It is becoming frustrating.  I do have to give the companies some credit.  In this area...the work is done in a timely manner, the wells and projects that are going on blend in with the country side.  The scenery is still pleasant to look at.  The companies are proving not to be very honest or on the up and up.  I really don't understand.  I want to be treated fairly and only want to be fair to the companies.  I guess I'm disappointed because I wasn't raised to be dishonest.  It's disheartening to be treated as if I was an uneducated individual.  Now they want my husband to sign the lease.  Why?  It was perfectly fine for 3 years.  I personally own the land out right.  They don't want to renegotiate the lease.  They just want him to sign it.  Does anyone know why this is?  It doesn't benefit me.  I feel that they are trying to be sneaky on this.  Don't ask why.....it's just a gut feeling.  Royalties??????  What is that?  I don't believe they have any intention to pay royalties to me even with a contract.  My contract is by far a bad choice that I made.  I totally accept the responsibility for this.  After all I did sign it.  I have contacted them and have been pleasant, overly fair.  As many of us have found out the hard way......I don't feel like they intend to pay royalties to the land owners.  That's a shame because I feel like now they are thieves.  It's become very disheartening to me.  Sorry to sound like a cry baby but I have worked hard all my life.  I'm a veteran.  Now this is another blow to how veterans are treated in the country that we have so believed in.  It's a pity to all that have worked hard!!!!!  They have been more than fair with these companies.....only to have them lie, steal and not honor their contracts with the hard working, honest people of this country!!!!!!!

Permalink Reply by Billy Park Whyde on November 15, 2013 at 5:57pm

Time for you to get a copy of your lease and see an attorney for hopefully a free consultation. 

Permalink Reply by Darlene Newton on November 15, 2013 at 10:53pm

YOU are not a baby!  So many people are afraid to say a thing in fear of retaliation from the gas companies!  As I have been Preaching :  You are NO more stupid that those who bought into the Obama Crap Care Dream!

They lied to you, took advantage of you , and will probably NOT pay you your rightful royalties!  The Gas Companies knew exactly what they were doing, they sped right into our states without ever giving Landowners a chance to understand!  If our Politicians cared they would not have let this happen!  I believe e they allowed it to happen as they lined their pockets!

I beg you to whine, cry bitch and scream and do not stop until they are MADE to do right! No one has stuck up for me sir but I will be there to help tell your story cause I am sick of it!  I have been called a whiner etc. but until they walk in our shoes and experience greed first hand!  They can  e thankful we are here to tell our stories because they have a chance!

The point is WE WERE NOT raised like this 

Permalink Reply by Darlene Newton on November 15, 2013 at 11:02pm

We have to be heard we need to scream and DO NOT FEEL GUILTY for doing it!  Do you not see they will in the end make it so we lose our land  they are one step closer!

Permalink Reply by Darlene Newton on November 16, 2013 at 4:46am

Oh really Chris Decker!

 That at this time has nothing to do with it!  My Divorce Lawyer fully understands the law Sir!

I am a cry baby, did they steal your 50,000. plus?  You can run your mouth all you want I am waning these people these gas companies are SCUM!  I do not want them to lose their land OR their money!  I am not and never was against drilling but STEALING is a flat out cry!!!!!!!!!!!!!!!

Mr Chris Decker either you are a Big Gas owner or a landman that loves to screw Americans!  One question?  Are you crying because YOU have to pay for MY healthcare and everybpody elses?  Did  you buy into the Obama Lie?  Cause their AIN"T NO DIFFERENCE Buddy WE WERE LIED TO!!!!!!!!!!!!!!

A LIE is a LIE!!!!!!!!!!!!! 

Permalink Reply by JREwing on November 16, 2013 at 11:31am
Chip, I was the first person a week ago today to give Darlene grief for ranting, but since have learned what Chesapeake is doing to her and her family. I can honestly say, if Chesapeake was doing the same to me and my family, I would be ranting and raving too, or worse. We can shame her and others like her all we want for not hiring an attorney before signing a lease, but what Chesapeake is doing to them; collecting enhancement fees retroactively, is criminal in my mind. I apologized to her and thankfully, there are a number of bills in both the state house and senate that may provide some relief to these poor people.
Permalink Reply by Darlene Newton on November 16, 2013 at 11:50am

I appreciate that JR, believe me I am not a whiner!  I have worked my ass off ! Paid my taxes ...... Yes , I am pissed and I do NOT want it to happen to YOUR Mother or YOUR  father !  Some of the people they have done this to are poor, I am luckier but way not rich!  I have absolutely NOT ONE good word to say about Chesapeake and I warn ALL of YOU!!!!!!!!!!!!!!!!!!!!!!!!!!

The funny part like you , people are so quick to judge and automatically think I am or was against this and I was not!  Chesapeake has made a very BAD situation in Bradford County and they should have to pay the people they screwed or get out of town!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1

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