Is this truly 1/8 royalty ?

I am considering buying a parcel that has a lease on its option with two years left .

 The current lease reads like this . "To pay lessor , free of cost , a royalty of 1/8 of revenue realized for all the gas and the constituents thereof produced and marketed from  the lease hold "

 If a well was drilled with this lease , would the landowner get the value of the gas as stated by Henry Hub or something similar , or would transportation and other expenses be deducted  from the royalty ?

 Comments welcome , thanks in advance . Joe

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Permalink Reply by Todd on February 6, 2013 at 8:18am

Ralph,

What state?

Permalink Reply by Ralph cramdon on February 6, 2013 at 8:51am

NY Southern Tier , Talisman , expires 2015 . Thanks

Permalink Reply by Todd on February 6, 2013 at 2:09pm

Sorry, couldn't answer for NY.  I'm in WV...

It really depends on the laws of the state.

Permalink Reply by Ralph cramdon on February 7, 2013 at 1:39am

North Potter  pa seems to be weak in the Marcellus , Sometime in the future the region seems to have a shot at the Geneseo / Utica .

 Most corps in Potter have halted / slowed operations .

 Hopefully for folks like you , news will break soon of a breakout well in your region .

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