Replies to This Discussion

Permalink Reply by craig on April 22, 2015 at 1:24pm

We need more than good luck from my perspective. Oct,$2.05/mcf/Nov,$2.19/mfc/Dec 2014,$2.80/mcf was my first check ... CHK kept around 30% of the royalty due for gathering/processing. Then the price went down to $1.80/mcf for January, which is weird as the going price was actually up. Probably pre-sold, or just ripping us off with their cohorts at Access Midstream.

They kept 62.3% from Januarys royalty, which % would go up with the lower price and same cost of gathering/processing. Volume was also down 9,000 mcf in January though. You are at their mercy now, but hopefully our State Legislatures will wake the heck up and see the writing on the walls so plainly visible to the rest of us.

Puzzling that lots of folks are reading our county site but not much input is showing up. I suppose industry shills are padding the view #'s as well.

Good Luck, Mtn Jack.... keep us informed if you would!

Permalink Reply by mlb on April 27, 2015 at 8:03am

I mailed in a division order for the maga unit.  Size jumped a couple hundred acres in that unit.

Nothing back yet.  I did tell them in an email that " my lease says free of cost and the price is to be the the higher of prices whether sold to an affiliate or non-affiliated party."

So will see if they honor any language of some new leases.  I will post it simply because if they take deductions from this one ( type of lease ) then they simply do not care what a lease says at all.  ( which we kinda know ! ).

And yes the prices.  Very low.  I was hoping for an avg of 2.50.  Looks lower.   And our declines, steep.  But old wells that sat forever.  I do see a lot of permitting going on local well pads for the data being kinda not so great.  I personally think they drilled simply to HBP and if the wells were good fine, if not they'd work on that part later.  Just a hunch.

Permalink Reply by craig on April 27, 2015 at 8:55am

When did you receive the division orders needing signed?

The Rolling Acre folks hadn't received theirs as of mid last week. I told them the six months is up real soon, so they would hear soon. Six months seems the maximum they can go producing and not declaring a unit and start paying shortly thereafter (usually in one or two months).

A little bird, that should know, told me that CHK will be drilling a number(over a dozen)  of wells in Beaver County before year end. Time will tell, but this person has been fairly correct (not always) in their statements previously.

Might explain the filing for new permits by CHK in the past 6 months or so.

Permalink Reply by mlb on April 27, 2015 at 10:42am

That division order came mid april and they told me via email that payment is normally the following month about mid month.  So will see.

Also, they do pay you for the months it was in production except two are kept in arrears.  But if running 6 months then you should get 4 months and then go monthly.

That is good news about the drilling.  I know lots of leases expire in 2016, maybe some in 2015 that I am not aware of.  So will have to see if these are new pads or just new drilling.  Either is good of course.

I have seen new permits for Liberato, Fedorchak, Jenkins, Hogdon, and one other one at least. 

Permalink Reply by craig on April 27, 2015 at 3:58pm

The following mid month is when my first check came, so you should get yours in the same time frame I bet. They were only behind by 5 months so my first check was for 3 months, with 2 in arrears. Thanks for the info.

Permalink Reply by Todd on April 27, 2015 at 2:45pm

Major League,
I believe PA DEP permits are only good for 2 years so you might want to verify if some of those permits were merely renewals.
This is the future natural gas pricing estimates according tonthe EIA dependent upon a myriad of factors; however, price WILL go up:
http://www.eia.gov/forecasts/aeo/mt_naturalgas.cfm