How much are deductions draining your royalty check?

We seem to hear alot about Chesapeke siphoning off alot of deductions from royalty checks. How are the other gascos treating their landowners? Shell , Range , Hilcorp , Chevron , etc. , etc.?

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Permalink Reply by RB on July 17, 2013 at 6:51pm

Do you get royalties from 4 companies? How does that work?

Permalink Reply by bungalow_steve on July 16, 2013 at 11:36am

370,000mcf/month * 1 month/30 days * 1mmcf/1000mcf = 12.3 mmcf/day, which is good!

 

Permalink Reply by kay moore on July 16, 2013 at 11:50am

thanks so much..hope you are right...

Permalink Reply by Tim Tarr on July 17, 2013 at 8:12pm

M=1000 (Roman numeral)

So 370000(M) = 370(MM)

370/30 days = 12.33 1/3 MMcf a day 

Strange but B=Billion and T=Trillion Romans didn't have a Federal Reserve or printing presses so didn't need numbers that big. : ))

Ccf (100) was used by utilities but most now use therms.

Permalink Reply by st. croix on August 31, 2016 at 7:45pm
Don't get to excited about getting a big check!
Permalink Reply by James T Monyak on July 16, 2013 at 12:45pm

Consol took a 30% deduction!

Permalink Reply by M.A.B. on July 16, 2013 at 1:38pm

if your royalties are18%, is 30% taken for deductions leave 12.6% ?

Permalink Reply by Larry Livengood on July 16, 2013 at 3:50pm

If your 18% royalties on the gas sold earned you $100.  They would take a 30% deduction from the $100 or $30.

Permalink Reply by farmgas on July 16, 2013 at 1:44pm

Mr. Monyak,  where has Consol taken deductions at 30%?  Is this common for them or only an isolated occasion because of high gathering or processing expenses for wet gas?   Do you think their deduction would be as high in a dry gas area?

Permalink Reply by James T Monyak on July 17, 2013 at 8:15am

My royalty rate is 15.5% and the lease is in Greene County which is a dry gas area.  I am an O&G accountant and I will be auditing their numbers, but I have not found the time to do the audit.  I think they are taking advantage of us landowners since Noble Energy owns half of the well and they don't make any deductions on their royalty checks. The questions now is Consol deductions correct or did they cross the line?? 

Permalink Reply by lettijack on July 17, 2013 at 11:09am

James,

  If you don't mind me asking, were the deductions assessed by Consol or CONE Gathering?   For well pads around me (Westmoreland Co.) I believe Noble and Consol are 50/50 owners of the well pad infrastructure and then there is this entity CONE Gathering who owns and operates the gathering lines between the pads and the transmission line.  

Permalink Reply by Larry Livengood on July 17, 2013 at 11:17am

The gathering system is operated by Appalachian Midstream Services, which is a subsidiary of Access Midstream Partners

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