we are wondering why our royalties continue to drop we have been receiving them for 3 years we were told after the first year it would level off and the second year would be half of what the 1st year but that has not been the case it is now about a third and it is continuing to drop at least 100$ every month some times more is it possible that they are not letting it produce or is it really not producing just wondering if anyone else is dropping we are in noble county
The wells are a finite resource....not an endless pool of gas there. The Producers produce and then move on. Current technologies allow for a small percentage of the available gas in place to be recovered (maybe 10-15%, IDK?)....nature of the beast.
Down the road, when the long term pricing environment dictates, and with new technology, they might come back after they have produced all their 'low hanging fruit' resources, and recover more gas from these 'depleted' wells. Don't see that in my lifetime.
I have read that there is an inherent danger in 'choking' a well too much....reduces the amount of gas that might have been recovered with a freer flow, so it happens at a great risk to the producer....that being smaller returns from a heavily choked well.
All in my humble opinion.
FULL DISCLOSURE!!! Google Vera Scroggins