Royalty amount decline!

My latest royalty check showed a drop of $45,000 from last month. I'm only 9 months into receiving royalties. That's a scary decrease.

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Permalink Reply by Trapper on July 3, 2014 at 11:33am
The "information" given is incomplete. All I asked I'd what % of a decrease is this......That is pertinent.
Permalink Reply by jason irvine on July 3, 2014 at 8:46pm
Zach please don't feel the need to even respond to that crap. Please don't let that effect future posts. Thank you for the info. I have property in wetzel Tyler county. Are you signed with gastar? Congrats on the nice royalties. And the Utica is coming bro. May all your wells be gushers
Permalink Reply by Trapper on July 2, 2014 at 10:57pm
What % does this work out to?
Permalink Reply by Kim on July 3, 2014 at 12:39pm
Thanks for sharing, it is helpful to those of us that are researching numbers and statistics. Our family is in Gilmer Co WV and currently neg lease for Marcellus!!
Permalink Reply by Rene Oldham on July 3, 2014 at 1:32pm

Hi Zack.  How many acres do you own?  We are new to this and own land in Salem Township in Monroe County.  Just trying to get educated before they begin drilling in our area.

Permalink Reply by Jason on July 3, 2014 at 7:06pm
Rene - doesn't matter how many acres he owns. He listed above his royalty was $1000-$1500 per acre per month.
What would matter would be btu of gas. Higher is wetter and thus more profitable yet needs extra processing.
Permalink Reply by Max on July 3, 2014 at 8:31pm

Zack, Thanks for sharing that information.  I know we had a substantial decrease one month and it was due to problems with the compressor station.  The next month's royalties were back to the same approximate amount.  Perhaps that is your problem.  

Permalink Reply by Zack Jameson on July 3, 2014 at 8:58pm

I will update next month also. I have a feeling this is only temporary, although I know I can't expect huge checks each month. A big reason I'm surprised at the sudden drop is because the unit I'm in is so large. It's 11 wells and 1250 acres, with that size I want to believe that the royalties will remain high for a longer period.

Permalink Reply by adam sorell on July 3, 2014 at 10:43pm

i'M not so good with math but with 11 wells that only comes out to about $100-$150/acre per month per well when its in top production???? correct me if i'm wrong.

Permalink Reply by Zack Jameson on July 3, 2014 at 11:13pm

You may be right. I never broke it down per well. That just goes to show you who is making out on all of this and it's not the landowners.

Permalink Reply by Tim Tarr on July 4, 2014 at 7:06pm

Zack,

  Do you know Who processes your gas? I'll bet it's MarkWest (MWE). They had a shut in for ~7 days for Cryo-equipment (de-ethanizer) hook ups. If I'm correct you'll see next month go up but not to Feb. pricing (April or May check ?). Keep in mind gas price has dropped since Feb. Remember that polar vortex got them prices way up.

  I expect to see another drop-off in 2 months because of that lightning strike in Houston Pa. They were off line for a few days and re-routed some gas to Majorsville. I'm not sure how long it took to get that 3rd unit back up in Houston. It still may be off-line. They got the other 2 up and running in a week or so.

  Not sure but sounded to me like someone didn't put those isolation kits in properly. A few (more?) lightning Rods might be a good idea too.

 

Permalink Reply by Zack Jameson on July 4, 2014 at 7:40pm

Tim, I'm right near Majorsville. MarkWest processes the gas. The processing plant is literally a stones throw away. Noble and CNX are in a joint venture with the wells in my area. Noble did the drilling and is operating the wells. I think the numbers will improve. 

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