How are the surging natural gas prices affecting drilling this year, and what about going into 2022?  Are the gas companies taking advantage of these higher prices?  What`s next?

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Without having the ability to conduct an audit of the gas company, how does a landowner know for certain what price the gas company is actually paying for NG?  

Good question Farmgas , as an Investor not an owner , I await an answer as well .... As an aside , my closest gas property to PA is in Lindley NY , my Wife insists that those wells in Northern  Tioga PA are draining  / stealing our gas in Lindley .... I continue to laugh at her as I try to explain porosity to her .....  

 Ralph,the fault lines between the drilled units helps them communicate.

Totally agree Paleface , but its my 'hope' that Lindley is far enough away from the action in Tioga ......

I`m not suggesting gas companies are being dishonest in their relationship with landowners regarding the gas price used for royalties but it just doesn`t seem transparent how they arrive at a price.  It is their business I suppose but isn`t it also true they have legal contracts with royalty lease owners? 

One outfit I have owned in the past , NRT , based out of Germany , hires an agent based in Europe to watch for its Royalty interests 

I think Seneca sells to themselves.

I am hardly an expert on this subject ... I would ASSUME there is a meter at the well site or at the site where pipelines join ... Is that meter honest ? Is it regulated by the State ? 

 I have only been to a few well sites , none of which were gas .... Those oil stripper wells in the Wellsville NY area were connected to translucent tanks awaiting a truck to pick up the Oil .. .Those well sites smelled to me like 90 weight gear oil ..... The oil ends up in a Refinery in  N PA , owned by a New City Fella who made $Billions in the Food Business 

The use of meters and other types of gas measurement instruments will always have a degree of accuracy in + - ranges.  Sometimes the measurements might favor the landowner and another time might favor the gas company.  That would be expected from any measurement devices.  On shallow well sites on my property each well has a separate data card showing pressures & gas volume.  These performance cards  are collected once each month by a well tender and sent to a gas company location where actual gas volume values are calculated.  In my judgement calculating exact gas volumes is somewhat challenging.  That + - factor enters into the process.  It`s the NG price value applied to Mcf that I wonder how it is determined & applied for royalty calculation.  I have seen different prices per Mcf used in the same statement for multiple shallow wells on the same property.  Once again, I`m not accusing gas companies of foul play in their relationship to royalty owners.  A clearer picture of how this process is managed would be nice to learn.

Farmgas , its difficult to understand different pricing on your wells if they use the same transport pipeline , unless the contract [ deductions] agreed upon have been different for each individual well .. Great discussion , we all learn something all the time ..

Where have all the information seekers plus knowledgeable gas industry folks gone that used to make this blog site so great to be a part of?  Have they all gotten their wells & gas royalties or have they just given up thinking they will receive gas royalties?   This shale revolution is still alive & well, isn`t it?

I agree Farmgas.  I was first approached by many companies in 2008. We ultimately signed with CHK for 5 yrs and it expired in 2013. Then Rice picked us up. I spent an unbelievable amount of time on various sites and learned SO much.  I have now turned from middle age to OLD. Not near the exchange of info now as back in the day of what we called the Gasicanne.  Good luck to everyone still waiting. 


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