ROYALTIES

IF I OWN THE LAND AND MINERAL RIGHTS WHERE THEY PUT THE PAD DO I GET ROYALTIES FROM EACH ADDITIONAL WELL DRILLED?

 

 

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Permalink Reply by Billy Park Whyde on February 7, 2012 at 6:19am

"I would prefer to have all of my land put in to an existing Production Unit unless I was guaranteed that my released parcel would be added into a newer Production Unit."

 That is the possibility option I was trying to express.

 Utica those little islands might prove to be mountains for oil companies if they can not exclude them from a drilling unit.

Permalink Reply by Frank Walker on February 7, 2012 at 6:01am

Billy

Are you saying the PA DEP will be releasing, in March, the July 2011 through December 2011 production numbers for PA Marcellus wells??

I have been looking for those numbers.  I badly need them.  Went only this morning to the PA DEP website where I found them unavailable.

Do you know when in March the second half 2011 PA Marcellus production numbers are anticipated to be available??

Permalink Reply by Billy Park Whyde on February 7, 2012 at 6:15am

I believe it is Ohio where the numbers will be coming out.

Permalink Reply by Frank Walker on February 7, 2012 at 8:02am

Oh, well.  Thanks just the same.

Permalink Reply by Billy Park Whyde on February 7, 2012 at 8:09am

Frank ya see my thread I started ? PA passes Marcellus Bill

Permalink Reply by Carol on February 8, 2012 at 2:09am

In some counties, such as Westmoreland, you can get the unit map right off the recorder of deeds website.  Also, the DCNR has all of the maps and drilling plats available to the public, by request.

 

Permalink Reply by Carol on February 8, 2012 at 4:56am

Michael,

Maybe something I wrote was not clear - for example, last month I received an equivalent of $71 per acre per well.  That's way above the $10 -30 per acre that has been mentioned on this site.  If I was only getting $2 or $3 per acre, I wouldn't even be on this site - I would have no interest in reading about the Marcellus Shale at all.

$71 per acre multiplied by 3 wells multiplied by 23 acres = $4899 (at 2.8 mmcf per day actual average.)

Next five wells have been reported by Rex Energy at 5.5 mmcf per day which should get me to an average at $81 per acre per month per well.  

The first three wells were held back due to pipeline capacity constraints.  I'm not sure what they are producing now. 

Permalink Reply by mike4t on February 8, 2012 at 5:04am

Carol,

I understand the $71/acre/month...... I thought the reported estimates are $10-$30/acre/well/DAY.... $300-$900/acre /well/month.... so your $2.70/acre/day is well below that estimate

Permalink Reply by Billy Park Whyde on February 8, 2012 at 5:12am

Carol did you know about this?

 Reply by Billy Park Whyde 34 minutes agoDelete

On a WHOLE DIFFERENT TOPIC HERE BUT I FOUND THIS!

http://thedailyreview.com/news/chesapeake-energy-describes-adjustme... 

Chesapeake Energy describes adjustment in royalty payments 

Permalink Reply by Carol on February 8, 2012 at 5:31am

Yes, I was aware of that.  Luckily, my lease allows for absolutely NO deductions of any kind.  I have been receiving royalties based on the actual sale price which have been even higher than the rates that are published daily.  Also, I did not sign for 12.5%.  Those with deductions and 12.5% are only receiving about 8% - 9% actual royalties.

Permalink Reply by Carol on February 8, 2012 at 5:17am

Sorry Michael - I misunderstood your prior post - yes, you are correct, it does equal about $2.70/acre/day/well.  With a 16% royalty, no deductions, and gas prices around $2.60, a well would need to be producing approximately 11.2 mmcf per day to get close to the $10/acre/well/day.  Some wells may be doing that in Washington county and in the NE part of the state, but I don't think anyone is seeing those rates and $ amounts per acre per day in SW PA.  Maybe in Butler county with a Utica well that has oil. 

So, yes, my numbers are true numbers of actual royalties - $2 - $3 per acre per day per well in Westmoreland County.  Those with 12.5% royalty and deductions aren't even seeing that much money.

Permalink Reply by mike4t on February 8, 2012 at 5:40am

No problem, thanks!

 

It looks like not too many of us are going to be "Shale-ionnaires"

 

Mike

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