My big drop in royalty check

I'm leased with Noble Energy. My royalty checks have declined due to the low selling price of gas, but

the checks have been decent. I received my latest check today and was quite shocked, The amount per

acre I received from last months check to the current one went from $118.29 per acre to $4.16. Why the

big drop? The wells have only been producing for 2 years now, so there's plenty of gas left. Did they cut

back on production that much? Has anyone else experienced a drastic decline in royalties. I have no

deductions of any kind taken from my checks by the way.

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Permalink Reply by Frank Walker on March 31, 2016 at 1:50am

There is more than enough blame in Ohio, for the sorts of things Ron is detailing, to go around.  I do not live in Ohio, so my thought instantly focuses on the most highly placed and visible individual of the lot; on a man who overflows hubris to the point of believing he deserves to be POTUS.  I'm referring, obviously, to Ohio's K-sick . . who makes me sick.

To the many Ohio denizens here, I offer thanks.  K-sick is originally from Pennsylvania.  You gave him shelter and took him off our hands.  This was an act of great kindness and mercy, a good turn done by Ohio to assist your Pennsylvania friends.  We are forever indebted.  We have dodged a lethal bullet which sadly struck Ohio instead.  It's a pity.

So could K-sick leadership have saved Ohio landowners who are being cheated mercilessly?  You should already, by now, be able to figure out my opinion on that one.  But given the extent to which K-sick is full solely of himself, Ohio landowners never had a prayer of receiving his help.

Permalink Reply by David Allen Lilly on March 31, 2016 at 2:54am

Kasich is as fortunate as Obama is to have been gifted a pitiful sitting governor lacking a single legislative accomplishment to show for his 4 years as governor AND to have run fro re-election against a guy from the highly corrupted Cuyahoga democrat machine, a guy caught late night in the back seat of a county car, parked in some lonely lot, with a woman who we can safely say was not his wife. To make matter worse, Ed Fitzgerald was found to not have had a drivers license for lo these many a year that he was a Cuyahoga county exec, driving a county automobile.

Do not over think Kasich's perceived popularity here, how he bested Trump in the primary is a mystery, and if he thinks he has a chance at the presidency he is outta his mind totally.

Permalink Reply by INVICTUS on March 31, 2016 at 4:54am

I'm afraid I have to agree with you. I am personally disappointed in Mr. Kasich for his failure to at least offer some legal defenses for individual landholder regarding their surface and subsurface mineral rights.

Republicans are supposed to focus or at the very least offer large public sympathy for the individual and their respective property rights. That is FUNDAMENTAL to that political philosophy.

This man does not respect and does not articulate that position.

That is reflected in his continues support of Mr. Zehringer and HIS subordinate, Mr. Simmers, both of ONDR.

None of the above statement is an anti-oil/gas argument -  but clearly they have overwhelmingly sided with the producers by their benign neglect for the mineral rights holders within Ohio.

Won't even look into the allegations it for their constituency.

Keep in mind much of this constituency is Rural Ohio, a good part of the base that elected Kasich.

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on April 1, 2016 at 3:28am

INVICTUS,

       When I was told by a lawyer that the ODNR doesn't read the meters at the wells in Ohio, I didn't believe him.

I Called Tom Hill NE ODNR Supervisor who confirmed this fact by saying "That's right, we don't read the meters at the well, we use THE HONOR SYSTEM.

My response was " ___________ Has No HONOR.

I notified the Tax Commissioner's office who has the authority to Audit the meter readings by hiring contractors, of the "POTENTIAL" theft in progress. I talked to one of the investigators by phone after I sent my complaint by mail and electronically. I believe the Tax Commissioner is on my list of Co-conspirators with Chesapeake.

Then last year the news comes out that Chesapeake is under reporting well products on the Indian Lands and to the Federal Government. Why should Ohio expect to be treated fairly using the HONOR SYSTEM?

Paige 5H has had 5 to 6 tanker truck pick ups per month amounting to a maximum of 35 barrel pick up and as little as 11 barrels picked up. The lawyers say this is actually a tanker load per pick up.

An investigation will reveal who acted on my complaints and who stood by with the gov & atty gnl watching Ohio lose Billions.

Some politicians have started believing they are the government, it's time the laws are equally enforced against dirty politicians as well as the Citizens and O&G companies thieving in our state.

Chesapeake has been wanting a shale play state gov in the White House. Let's make sure the Canadian and Bible totter find their way to the Big House instead. The people have the power to do this. 

Permalink Reply by frank speaker on April 1, 2016 at 2:06pm

Doesn't the same authority which monitors pumps at the gas station have authority over well meters?

Permalink Reply by rmc on March 31, 2016 at 4:13am
Wow Zack that's a huge drop in royalties being paid if my memory serves me correct. ,you said you where receiving about a 11 hundred per acre about a year ago.
Permalink Reply by Zack Jameson on March 31, 2016 at 4:25am

RMC...yes a big, huge decline. 11 wells in the unit....go figure. I'll blame it on the state of the O&G industry. I'll have to play wait and see and let the experts figure it out.

Permalink Reply by Jeff Martin on March 31, 2016 at 10:26am

Hi Zack. Part of my acreage is in the same unit as yours.I get a check each month from CNX and Noble's joint venture. Noble adjusts their revenue from previous months in every check.(Actual sales versus projected sales,I guess).January's check showed 4 months of overpayment.Production was normal and I think next check should be also.I hope this helps explain the drop.  JCM

Permalink Reply by David Allen Lilly on March 31, 2016 at 10:58am

Thank you for setting the record straight.

Permalink Reply by Zack Jameson on April 1, 2016 at 11:13am

I received my official letter from Noble today explaining the small royalty check. Noble states....they "discovered that during the August 2015 through December 2015 production months, the spreadsheet used to calculate the weighted average price for your royalty had a calculation error, and this error resulted in an overpayment to you". It goes on to say that the Dec. 2015 sales price for gas was $2.25, but should have been $1.58.

1xc6tw2xj1fwlPermalink Reply by 1xc6tw2xj1fwl on April 4, 2016 at 5:37am

Expect much more of that in the future, bub.  This is all part of the "bankruptcy process."

Permalink Reply by dr j on April 4, 2016 at 4:57am

I was wondering if any of you are members of NARO?   I haven't joined yet but will be as soon as the rig goes up on the well pad.  

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