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Permalink Reply by Terry W. on August 25, 2011 at 1:35am

Jeff:

We are in northwestern Pa....right across the border from where they found

all the oil in two of the Ohio counties being producted from a Utica Well.

I am told that we are in a 'wet gas' area, which I can believe.  Just a few

miles from here is a well (Marcellus or Utica, I do not know) that is

producting a large quanity of Propane.  From what I understand, the

landowner does not get a  penny because of how the lease is written.

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Permalink Reply by jeff k on August 25, 2011 at 4:33am

Check this link out Thomas... it has a good example at the bottom on how to get royalties for marketable condensates in a lease

http://www.oil-gas-leases.com/how-royalties-calculated.html

Permalink Reply by craig on August 25, 2011 at 8:42am

Here's a snippet from an article(Tax Tips for Millionaires) I just read in the WSJ that may help in the understanding of gifting to individuals when you have lots of money....this is geared for keeping the money in the family but you could gift as below to anyone not just family i believe. This assumes you do have lots of money though.

Here's the link to the whole article which is lengthy, some of which is worth reading.

http://online.wsj.com/article/SB10001424053111904787404576528892563...

"This is a great time to make gifts to your family, says Janet Tighe, a financial planner at Mintz Levin Financial Advisors in Boston. Until the end of 2012 you can give $5 million, tax-free. If you are married, your wife can give another $5 million. These limits used to be just $1 million each. In addition you can give $13,000 a year to each recipient -- each child or grandchild -- and a spouse can do the same. So a married couple with, say, three children and eight grandchildren can give another $286,000 a year, on top of that one-off $10 million. Over ten or twenty years that really adds up. Your heirs won't have to pay a penny in estate or income taxes on the loot.

Put your grandkids -- and great-grandkids -- through college

This is a tax-free gift. Money paid directly to schools or colleges escapes estate taxes. It's like you're getting 35% off! If they've all finished their bachelor's degree, send them to grad school. And how lucky for them! Right now most children are struggling to afford college. Many are going to graduate tens of thousands of dollars in debt. Your grandchildren will get a college education, completely free -- and will save on the estate taxes as well! (You can also pay their medical expenses. Give them all braces! Botox! Nips, tucks and silicone implants!)

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Permalink Reply by Terry W. on August 25, 2011 at 11:20am

Back To Percentages for Oil and Gas:

How do you think that this would sound on an addendum?

"Royalty Payment on all oil and gas, along with all hydrocarbon and non-hydrocarbon

substances produced in association therewith, (except stored gas) Lessee shall deliver to Lessor, as royaltly xxxxx (xx%) of proceeds"

Short and sweet and not misleading?

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