Mineral Owner Frustrations: What are they?

I'm trying to get a sense for where the mineral owning community is today in terms of what are their frustrations and what are their needs?

Are these evolving or have they stayed essentially the same? I know there are the issues that remain the same, i.e. Royalty deductions etc, but what else is on your radar and what would you change? Either post below or email me at keith@shaleforum.com.

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Permalink Reply by Jeff Kerr on September 20, 2017 at 8:48am

The state rep's are in the pockets of the gas co's  Vote em out is the only way for us to redeem the wrong that's been done to us for yrs. 

  ITS SAD THAT OUR OWN ELECTED PEOPLE RAPE THE LAND OWNER and we are the ones paying there salary  Think about that. Leo S you hit the nail on the head  

Permalink Reply by G.H. on September 22, 2017 at 1:54pm

Someone has to pay for their campaigns.  US politics in 2017 is a sad state of affairs.

Permalink Reply by LAMAR R KING on September 20, 2017 at 10:05am

hello keith-my frustration is with the landowners-the landowners who roll over and play dead like a big old opossum!folks in the rural areas said about this last pres. election that we could never put a pro fossil fuel pres. in the white house BUT WE DID.now ny is feeling the heat because our pres [like him or not]put a quorum on the ferc board.a quorum is 3 or more on the ferc board.now we may finally get the much needed constitution pipeline in which should help ne Marcellus prices big time.so here is my point ;fight for your rights at the national level,state level,county level,and even twp levels.it may take time,blood ,sweat ,and tears but little by little good things will happen!NEVER GIVE UP!![this post was meant to be an encouragement,also].

Permalink Reply by Joseph-Ohio on September 25, 2017 at 6:41am

Ya all read it here 1st and earlier.

These issues are precipitated realities of earlier concerns - seems to me

Bad business practices should ya all ask me.

Land / Mineral Owners be aware.

Thx.

Good luck to all.

Permalink Reply by Kevin Snyder on September 25, 2017 at 11:45pm

Lori Huber: Is your lease in Washington County Ohio? And if so, which City is your property near? I have property near Grandview Township Ohio in Washington County and have never been approached to lease  nor sell my rights.Thank you, Kevin

Permalink Reply by Brian Werner on October 9, 2017 at 4:25am
There are several frustrations but here are my 2 big ones:
1) When I receive my monthly royalty statement from CHK there are sometimes a full page of recalculations going back typically 1,2 or 3 years. These are not recalculations of my royalty percentage - they are changing the well production and/ or the price sold at. For some months the figures have changed three or more times. Sometimes the change is small, other times very significant. I can see making an occasional correction to the previous month but changing the figures from 3 years ago multiple times seems to indicate gross incompetence at best.
2)Lease language is totally ignored. My lease is an old one but by my reading it indicates that the royalty will be paid at published market rate, not what ever they agreed to sell it for. It also says that the royalty will be paid by the 30th of the month following the month of sale. That means I should be getting royalties for July sales by August 30th not the first week of October. For several years I was getting checks 1 month late(example July by Sept 30th) but several months ago they stared coming even later and the new pattern is 1 month and 1 week late.

As far as market price, I have two wells under me from different producers so I have fairly good comparison data. I used the Henry hub data as an additional point of comparison for market price, realizing that it may not be the absolute point for comparison but it is data that is available for reference. I find Enervest being at least in the ball park for both oil and gas. CHK is close on oil but on average their gas sales are at about half price. CHK separates out the NGLs so gas price is not a direct comparison. But for the most part the NGLs don't effect that ratio and often lower it further, as for many months the NGL royalty is negative (yes the charge me for the removal of NGLs) and often it is only a few cents if positive. Some months the negative NGL royalty pretty much offsets the gas royalty, so CHK ends up taking both the gas and NGLs for free. The most frustrating thing is that the state tax on the NGLs is positive regardless of the royalty being positive or negative.
Permalink Reply by Emory Hagler on October 12, 2017 at 4:44am

Thanks for promoting your website covering all the major shale plays. I have been involved with the Haynesville Play since 2006, and,my wife's' family has mineral holdings in the Marcellus. Both shale sites have been invaluable over the years, and have greatly enhanced my understanding of leases and the practices of oil and gas companies. Something I think that would be greatly beneficial, is the expanded coverage of "legal precedents" that have been decided by state upper courts, that will change/effect oil company practices, and lease requirements. I have just learned this past year of Texas court cases, which define language, which truly protects mineral owners from unjustified royalty deductions, where one would have thought the lease language alone would have sufficed, but, the oil companies made an end run on the issue, based on the prevailing idea, prevalent in Texas and Louisiana  law, that holds gas and oil has "no market value" at the "well head" and only has value once the product is processed by the producer, I was amazed to hear how different some of the states, like West Virginia, where it has been legislated that the state is a "market product" state, where the operator should bear the expense of processing the raw gas and oil into a marketable product, theoretically anyway. But what it really boils down to is the basic principle of "contract law" the legal terms and agreements that the parties have agreed upon, regardless of what state they live in; the contract basically superseding the legislative motives that have been promoted. If more legal specialists could contribute, or, a forum format where the public could be alerted of big court decisions that effect how they would enter a lease, it would be great. Good luck to your continued success in promoting all the shale plays.

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