Finally started getting our royalty checks from Chesapeake and Stat Oil. I was a member here before but nothing was happening with our property and all everyone was offering was conjecture and hearsay. The checks we have gotten from our well in Bradford county are really not that good. We must have gotten an average production well. We have 15 acres in two units and the on that is producing is about 9 acres and the total checks between the two oil companies total about $1500 dollars for three months of production. The gas prices they sold the gas out was well below the well head price that you see on tv or on Marcellus shale forum. The gas was sold for over $1.50 less than you see everywhere and the amount chespaeake takes out for production is between 34-38 per cent which is ridiculous. Hopefully, the price of gas will rise in the future to give us a little more in royalties. Just wanted to post this because when I was a member before was kind of upset that no one would say what they were getting and told myself when i received royalties I would share the info. Really thought we would be in for a windfall but I guess it all depends on the output of the well and the thing is we only have one well drilled on the pad and it doesn't look like more wells will be drilled in the near future. Just have to hope the other unit I am a part of will produce better. If any one has any questions feel free to ask. Thanks

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As I understand it there are several reasons why your royalties are so low. One is that the wells were drilled in 2008 so they have already undergone substantial decline. Two you are in an area that that gas is stranded....that is the production greatly exceeds transportation capacity so price there are below normal market rates (as much as $1.50 below WTI). Third is that even WTI prices were at historic lows during that time period.  And another is that the wells are not at full production only running a few hours a day.

Add all that up and that gives you the very low royalties you received.  The good news is that all but one of those is reversible. And even the one, the depletion issue, may be reversible should they refrac or extend the laterals at some point.

Thank you so much for sharing this information. I hope that the price increases and/or production goes up for you and you see an increase in your checks.   This helps many of us that are still waiting on checks to see it really is hit or miss!

I can't wait any longer .  I am looking for someone to buy 10 NMA out of 50 that I own in Clearfield County.  I am asking for $3500 per acre.  I think it's a good price considering all the royalties that everyone has posted.  I need cash now and I am willing to sell cheap. I expect a well in the next couple of years.

like I said the royalties are way less than they said. and I would have never signed for this amount of money. to the others that are still not in a lease.

What did you sign for?  What bonus did you get and what royalty rate?  How many acres do you have?

There is only one vertical well with one horizontal or lateral off of that,, supposed to be six laterals altogether but they only drilled one to lock the leases in

sounds like you took a net lease this is why people shouldnt do things on their own.  negotiate a gross lease no ifs ands or buts then you wouldnt lose 34 to 38 percent.

Who are u responding to?????

Tico, Thank you for posting.  The well in our unit also started production in July, but we haven't received anything yet.  Did you get division orders to sign and send back first?  I keep checking the mail for the big envelope.

Yes I did get the division orders to sign and send back but they sent the check in the next days after I did that and they took the taxes out and weren't supposed to and I called and told them I sent tax info last spring and weeks before and they had no record of it,,stat oil also did the same division order and then next couple days the check,,,

Thank you. I  thought that they do not take the taxes out.  Is there a standard form to send to prevent them from doing so?

my division papers from CHK indicated that  if i did not sign and return them then the tax would be taken out at 38%; if i did send back, the tax would not be withheld by CHK but then would be paid as part of regular income tax at the end of the year....in my case, less than 38%.

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