Our August royalty check was at a price of $2.48 . Our July check was at $ 3.54.
Deductions and production roughly the same. When I asked our company about the drop off they said it was because at the Index where it was sold supply was high and that next month would likely drop all the way to $2.02.
Our PA gas was being sold to Dominion but the gas company now tells me it is now being sold to the Leidy Line .
This is a little hard to swallow but the gas company did provide documentation of the sale. I suppose they could have "dummied" them up but that would seem like a pretty radical and illegal move to make.
Has anyone else experienced this ? it's not more deductions but an actual MCF drop of over a $1.
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Their production is not hedged, evidently. Month to month price fluctuations can be mitigated by locking in contract hedges for longer time frames. Who's the operator?
Flatirons out of Denver, CO
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