I have been receiving royalty payments from one company since approximately January and started receiving royalties from another company last month. I received the 2nd payment from the 2nd company for this month and it looks like they are also paying for NGL's. I looked over my lease from the 2nd company and it is definitely spelled out that I would receive compensation for NGL's but when I looked at the leases that I have with the first company they say, "...2. Gas: To pay Lessor an amount equal to XX% of the revenue realized by Lessee for all gas and the constituents thereof produced and marketed..."
Does anyone know the operational definition of "constituents" in these types of leases? Are NGL's something a company has to actively - (I don't know the word i need here), drill or explore for or do NGL's just come out when the gas comes out, like a byproduct? Is receiving payment for NGL's usual?
I apologize for my ignorance in this area but google doesn't seem to be my friend today...
Thanks in advance for any insight you can provide.
We receive NGL payment from CNX in WV
Where are your minerals and who are the companies producing the various wells? There are some companies that do not break out the NGL, but are still paying on them.
CNX pays the NGL's but EQT does not, or at least I don't see it noted on the statements.
The minerals are located in Greene County PA which seems to be exploding with new wells. Can anyone in Greene County give an update of what's going on there?
Ugh... My experience has been, EQT does not pay for anything, including what they are obligated to in a lease!