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Permalink Reply by Kathleen on September 9, 2012 at 1:14pm

Unless your lease has strange language you get paid the % listed of whatever they bring up and sell.
Good luck.

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Permalink Reply by Marcus Huey on September 9, 2012 at 1:35pm

Thank you!  The difference between payment on just the natural gas and payment for the liquids is substantial.  Will really make a difference for me.

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Permalink Reply by Jack Straw on September 9, 2012 at 1:16pm

The term "wet gas" is a catch all term - referring to Natural Gas Liquids (ethane, propane, butane, etc.) and Condensate (Natural Gasoline).

Natural Gas Liquids are typically liquids when under pressures somewhat greater than atmospheric pressure and revert to a gas at normal atmospheric pressure.

I assume that the lease states "Oil & Gas"; and everything from Natural Gas, Natural Gas Liquids, Condensate to Oil is covered.

I would fully expect that the "wet gases" (aka NGLs) are included.

 

JS

 

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Permalink Reply by Marcus Huey on September 9, 2012 at 1:32pm

This 1901 lease is for 1/8th on oil.  Gas is paid a flat $300 per year.  I believe there are many of these old leases and that is why the West Virginia legislature passed a bill to require a minimun of 1/8th on gas.  Additionally, a class action lawsuit followed that determined that the 1/8th was at the well head, not after gas company expenses.  So, any language that would allow me to collect on liquids and not just the natural gas would probably be in the legislation.  I am guessing, and hoping, that I will get paid on the liquids as well as the natural gas.  From information that I have read, the liquids can double or triple the royalty payments.  So, I have quite a bit riding on this.  Thank you for taking the time to respond to my question :  )

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