This is what comes out of gas wells: We should know how to price these constituents in order to audit our royalty checks.

Three basic things we will need to know:

WHAT is coming out;

HOW much volume is coming out;

What price was paid for it when it came out.

The customer(s) buying products from the O/G companies are buying (simplified list)

Methane - "Natural Gas"

Ethane - Also a natural gas, used to make plastics, blends with hydrocarbons for a variety of reasons.

Propane - Ever use a propane lantern or grill? Also for heating cooking, some industrial uses.

Butane/IsoButane - similar to Ethane and propane.

Pentane - At this point, these hydrocarbons start to take on the characteristics of liquids. Raw gasoline

Above and including pentanes are the light oils that come out of the wells.

So, What is the price (in general) of these items coming out of the ground?

In our area, Chesapeake was paying around $2.67/Mcf for Methane

In our area, Chesapeake was paying ????????? for Natural Gas Liquids.

In our area, Chesapeake was paying around $90/ Barrel (Barrel = 42 Gal) for "Oil"

As you can see, I'm still trying to get my head wrapped around how this will appear on a royalty check.

Folks, without tipping your hand into your personal affairs, can any provide further detail as to how these various components are presented within royalty checks?

We should all already have visited CHK's site for a primer on this. I guess I'm looking for actual experiences on pricing/volume breakouts as they are actually presented to a landowner.

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XTO check stubs in Southwest PA (Southern Butler County)

XTO uses two categories R (Residual), L (liquid).  The R is methane (+ ethane if rejected), the L is NGLs and Condensate (oil).  The only way to tell if "L" is NGL's or Condensate is by price.

Typical prices:

Methane $3.70 per thousand cubic feet

NGLs (propane + butane) $0.95 / gallon

Condensate - $1.20 / gallon, $50.40 / barrel

Production on my unit began in October so I have only seen October, November and December check stubs.

Phil

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