Replies to This Discussion

Permalink Reply by LGB131 on April 19, 2012 at 2:30am

Is anybody familiar with how landowners actually get paid for these NGLs? I would imagine the language is there in the lease, but if the gas company is paying the landowner "at the wellhead," which is how everyone seems to want to get paid because they think that avoids shrinkage, others people stealing pieces of it, etc. then you might be out of luck in a big way. At the wellhead, you'd get paid some gas price plus a premium for the btu uplift, but you wouldn't necessarily get anything else since it would be the gas company that owns that gas stream, pays a processing plant to process it and then sells the NGLs afterwards. Kind of like if you sell timber and a timber company takes those logs and builds furniture, you don't get paid based on what the kitchen table they made sells for. Just a thought regarding all these people saying "wellhead wellhead wellhead!"

• ▶ Reply