Replies to This Discussion

Permalink Reply by melissa humphrey on September 20, 2012 at 4:39pm

What Bradford County Royalty Interest Owners are up against - until take-away  is expanded.

Today NE PS Marcellus gas weighted average was 2.76. However NE PA Marcellus gas going into the Tenn gas Pipe was 2.45-2.55.  That is a rough ~.26 discount.

 

Pipes are is full, capacity value goes up which brings pressure on gas itself.

 

Lycoming Cnty gas going into the Transco was running 2.86.

 

Melissa

Permalink Reply by Tom on October 2, 2012 at 6:52am

Where do you look to see the price of gas going into the pipeline?  I watch the Henry Hub daily price but how do they determine the price that appears on your royalty check? 

Permalink Reply by melissa humphrey on October 5, 2012 at 8:04am

tom-in theory royaslty stub reflects the price the gas wqs actually sold for.

 

NE PA used to run .10+ over NYMEX, of late it is .2 to even .4 under.

 

New capacity opening will help.

Hopefully over time we get NYMEX.

Regards

Permalink Reply by melissa humphrey on October 5, 2012 at 8:02am

We reviewed some JULY prices from check stubs, ranged from 1.85 to 2.15 for townships in south east

Bradford County.

 

It is getting better fast.

1.85 - .60 deductions leaves but $1.25.

3.35 - .60 leaves 2.65, more than double.

 

 

Permalink Reply by PLOVER on October 23, 2012 at 7:04am

The Friendsville Lease & Platt's Gas Daily -

The McGraw-Hill Companies - Platts Gas Daily - FOR TPG ZONE 4 IS AVAILABLE AS REFERENCED IN THE LEASE. THIS INDEX IS THE REQUIRED MINIMUM SALES PRICE FOR THE FRIENDSVILLE LEASES GAS.

THERE ARE FOUR ENERGY COMPANIES PARTNERED IN OUR LEASE AND ALL ARE EITHER PAYING THIS PRICE OR HAVE AGREED TO.

Permalink Reply by melissa humphrey on October 25, 2012 at 8:34am

Am not sure why the Fundsville Lease used TPG zone 4, was that lease written by the gasco, the leasee?

In Auguat it was as much s 2$ under NY Citygate

Permalink Reply by PLOVER on October 25, 2012 at 12:43pm

.. TGP ZONE 4 ... is where the gathering pipe lines - into the transmission pipe lines - from this area enter the TGP ... since there is a surplus of gas ... the price at this zone reflects the lack of demand ...

...when negotiating the lease terms this zone was acceptable .... the energy companies are not going to give NY citygate prices ... when the gas they are producing is sold at zone 4 of the TGP ... without this pricing term negotiated by the Friendsville Group ... the price the gasco would use would be less than this .... I KNOW - AND I HAD TO CONTACT TWO OF THE ENERGY COMPANIES PARTNERED IN OUR LEASE TO GET THIS PRICE...