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 David Allen Lilly on April 4, 2016 at 5:02am

what I desired from them is something, anything regarding how to understand your royalty statements and how to get the producer to correct and reimburse any shortages.

If I started a union of this sort that is exactly where I would have started as I constructed my group. I haven't found any help from their web site yet.

1xc6tw2xj1fwlPermalink Reply by 1xc6tw2xj1fwl on April 4, 2016 at 5:35am

Welcome to the world of big business.  Did you honestly expect to be the next beverly hillbillies?  Of course you did or you would've sold your mineral interest was worth something.  So far I've been right about all of my predictions (despite how much people hate it).  Here's a final prediction:  All of you are going to hire attorney's (to get your "stolen" money back).  Just keep in mind that the money being "stolen" is actually money you could never generate on your own anyway.  The attorney's are going to turn it into a 5 year class action lawsuit and by the time it's over you'll end up with about $13.00 per landowner.  The only winners will be the attorneys (who will be laughing all the way to the bank with their legal fees) and the gas companies (most of which will probably file bankruptcy and walk away scott-free.  Maybe it's time to use your brains and realize the only way you're going to get what's yours is by drilling your own wells.  Otherwise, sell the damn mineral rights and use the money to invest in something you have an ounce of control over.  All of you lazy crybabies just want to sit there and bash everyone on welfare but you're no different.  Oh because mommy and daddy gave you 100 acres you're better than someone who was born into a harsh life?  Get real.  Oh and to all of the haters that will dislike my comment - go back and read my others.  I haven't been wrong yet.

Permalink Reply by INVICTUS on April 4, 2016 at 6:01am

Completely disagree with your assessment regarding the posters here:

None of it was helpful.

Folks are looking for straight answers and a little bit of handholding, that's all.

Pretty sure I've not been lazy, not 100% sure, but fairly certain.

Treat it like a business.

Reason you don't sell the mineral rights: Subsurface rights trump surface rights, by selling out you just lost control of the land surface.

You just lost the very control you were seeking to protect over your land.

Not sure where the other angry comments (including welfare) fit in but I enjoyed the entertainment....

Permalink Reply by rmc on April 4, 2016 at 6:44am
You're the same type of person that use to say i was stupid to stay on that old worthless farm
14xt4y4cj053cPermalink Reply by 14xt4y4cj053c on April 4, 2016 at 6:21pm

gebralter.  I enjoyed your sarcasm. Oh, wait, you're serious.  You're at loss for common sense though.  No matter how we got OUR land, it's OURS as well as the gas/oil under it.. I didn't ask CHK to drill they asked me to drill.  They made the contract and now they are breaching that contract. You haven't been wrong yet?  You're delusional.  Oh, I get it, you're an Okie.  It's a shame they kick you out of grade school when you turn 16.  I would rather get my $13,00 than let CHK steal it.

Permalink Reply by G.H. on April 4, 2016 at 6:47pm

gebralter, I find your post interesting because you touch on a point that is very rarely mentioned on this website, namely, despite all the hemming and hawing over how unfair one particular signing bonus or royalty rate may have been, etc., this resource is never going to get developed without the oil and gas companies.  You can curse them all you want, but at the end of the day, if you want your royalties (and most people DO, despite what they may say to the contrary), you gotta get an O&G company involved to get them, or drill your own well, which isn't gonna happen.  

Now, this doesn't give them license to steal your NGLs, pay an unfair royalty, what have you.  But I think they all get lumped into one big evil group by some people on this site, when that's not necessarily the case, and without them, your oil and gas doesn't mean a thing anyway.  I guess all you can hope for is that you signed a contract with a good one, did your due diligence on negotiating your lease, and hopefully that the dishonest ones will be made to pay... but we shall see if the lawyers end up getting all the money and the last laugh - seems kinda likely.

I also find your welfare point rather amusing, but definitely not going to go down that rabbit hole.  

Anyway, I think I've found that most users here are friendly, well-intentioned, and/or here to learn, and don't deserve to be characterized the way you painted them.  But I have to agree with your point that the oil and gas companies are necessary to deal with if you want to see your oil and gas developed.  

Permalink Reply by David Allen Lilly on April 5, 2016 at 12:05am

I resent your comment, you qualify yourself with your opinion to sell your mineral rights, and I have nothing else for you.

The rest of us will carry on while you cower and insult.

Permalink Reply by rj rob on April 4, 2016 at 8:31am

It must suck to some people who don't have NG mineral rights....yea, royalty checks are down. But, they are still there after 4 years. And still pretty good. As soon as the price of NG goes up, so will checks. Most gas co.s are limited to pipeline constraints & choking back on wells.

1xc6tw2xj1fwlPermalink Reply by 1xc6tw2xj1fwl on April 4, 2016 at 9:21am

There is too much supply and demand will never keep up.  The only way it goes up is artificially which won't last long.  Argue all you want but I guarantee there won't be another boom like the one we experienced in the next 20 years.

Permalink Reply by INVICTUS on April 4, 2016 at 9:40am

Agree that the craziness may be over. The huge bonus payments we saw were, in part, the exuberance exhibited by folks like Aubrey McClendon will be tempered by the next go around, followed by the fact that much land is HBP.

However, it IS coming back, albeit slowly. the investment still going on in our area is still solid, though tempered. The royalties are there, though less, for now.

Oil and Gas has always been a boom/bust business but the future is trying to level out that pricing volatility and supply and demand do need to match up better.

In the meantime, Leaseholders need to use their time to reorganize with one another, reform the groups, YES, institute some lawsuits and make some lawyers money.

Now everyone has the understanding why the lease is so important.

I would not bellyache about the lawyers too much, there are now way too may corporately oriented O/G lawyers and not near enough GOOD and EXPERIENCED leaseholder/landowner O/G lawyers,,,unless this legal representation of landowner clients is seen as more lucrative, Leaseholders will have a difficult time pressing their cases in court or at the ballot box.

If you read more earlier post, however, you can see that this last statement by me is tempered by the fact that I see what terms some lawyers want to do the lawsuits. I found several of these unconscionable and not related to the risks involved. There is plenty more I might say about that in the future if it needs to be said...

Now is not the time.

Wait for some of these suits to make their way through the system.

There are other wheels turning....not all of it in the public view.

14xt4y4cj053cPermalink Reply by 14xt4y4cj053c on April 4, 2016 at 6:25pm

History proves you wrong.

Permalink Reply by David Allen Lilly on April 5, 2016 at 12:14am

Fellas, do not allow the likes of gibralter to dissuade you. Hold onto your royalties and keep pushing, keep fighting for what your lease says is yours.

We need to do a better job sticking together and figure out how to better decipher our royalty statements and balance them against our lease.

I barely graduated high school and worked my tail off to get some property. I worked very hard through the leasing process and did well. I only want what is mine and the shortest way to that is for us to stay together.

Do not be shaken out of your boots.

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