The State Government also has something to do with this. Pa doesn't have laws in place to govern the Marcellus gas. We don't have allowances as in other states. A test is run on a well and the government agency then tells the O&G company how much gas they can produce from that well without depleting the resources. Pa doesn't have this in effect and some are running wells wide open. If there was a control in place the prices would be much higher. This is some of the next legislation that needs to be put in place.
All said and done for September production, from Chesapeake, we were paid 7 cents per mcf.!!!! That was from the 9 wells we are in from 3 units. These wells produced 3 bcf for the month. Granted, Chesapeake only markets 1/3 = 1 bcf. Still, $559, check is not much for that much gas. We would be better off leaving it in the ground. They are depleting the resources. Stat paid 88 cents. Not much better, but you don't see deductions they take before figuring the price of your gas.