Since some results are being posted for Columbiana County wells for Oil, & Gas, would any royalty recipients care to disclose their percentages of Wet vs. Dry gas ??
Curious to find out how much wet gas is producing.
It is practically impossible to answer this question. Each well is different and even for one well for each sale and there appears to be two per month for our well this is different. Our check stub shows sales of oil, gas, ngls. Each is in a different units oil in bbl-barrels 42gal/barrel, gas in mcf thousand cubic feet, ngls in gallons. So to determine a percentage you have to convert to a common unit which IS possible but not simple.
You could compare dollar value but each has a different value per unit.
The best I can do using the info we get on check stub is 1% oil, 66% dry gas (based on btu listed between 1000-1200) and 33% ngls. This is based on the net values for June first sale for example for entire well there was roughly $1200 in oil and $200,000 in dry gas, and $200,000n ngls. Since the value of ngls are worth twice as much as dry gas roughly that is why I estimated 66% and 33%. This is in southwest columbiana close to Carroll.
Thanks James for answering a practically impossible to answer question.
Your well must have started paying before CHK cut back on paying for NGLs. Buck Well 1H NGL income is being completed wiped out by a huge charge for processing someone elses NGLs, or our NGLs that aren't being reported.
The 6H Well has BAD NGLs so CHK is getting rid of those nasty NGLs for the farmers in the area.
And so goes having a bullet proof lease. No one thought the producers would take the money and run, but for now that's what they are doing.
We have received only two checks and just recently.
Have you figured out if you have been short changed?
If you are selling oil, gas, and natural gas liquids, you should be getting checks well above the $57 to $150 per acre we have been getting.
Shame on anyone that would let this happen in Ohio. Can you say Theft?
I knew you could.
You folks are going to be pissed when it comes your way.
We have verified that the production for the first quarter matched the production on our first check stub, but first quarter is just for March. We will verify April, May and June next. We have received more than $150 an acre to date.
Some additional checks you can perform on your royalty statement:
1. Check the value Oil, Gas and NGLs sold for in March on the open market. I bet your royalty statement isn't close. CHK sells to themselves, it says so on the royalty statement (We may sell to an Affiliate).
2. Multiply your total Natural Gas MCF by 2 and that will tell you how many gallons of NGLs should have been reported and paid.
3. Look for some negative signs in the NGL production section, that is probably a processing fee that isn't coded. I know CHK is either taking the NGLs for free or charging more to process them than you will be paid.
4. Look for Taxes on NGLs, I bet you have been taxed for more NGLs than you were paid for. There is no NGL tax in Ohio.
5. Also look for NGLs taken with no payment, that's going on at Buck Well 6H.
6. Look for severe underpayment on a 2nd sale of oil and gas. Bad oil has been the explanation so far.
7. Your gas was used free at the well, it says so on the royalty statement. If you have the same lease I have, that gas and oil used at the well head are to be paid for by the producer. But who read leases after they are signed?
8. Check your ownership number. Does it change when Natural Gas and NGLs are sold? Less ownership on a large sale, more ownership on a small sale. The ownership averages out but you get shorted on the large volume sales. How does that work? Not well in my book.
The above items are what I see each month on my royalty statement.
Does it not make a difference where the well is as far as nearer the east or west?
I would be curious to hear from royalty recipients who are not with CHK and what their statements look like. CHK has developed quite a reputation for outright dishonesty. When you have the Att. General of a state bring a class action it kind of says it all!