Could someone give me an idea as to the royalties payments people are getting per acre around Bradford County?
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Thank you Matt-you speak with certainty. May I ask how you know?
Dan
When your land tract is pooled into a production unit, you will receive royalty from all wells drilled in that unit. The wellbore does not need to go under your land for you to receive royalty from a well in your unit.
The gas companies can hold your lease in a pooling unit, if your lease provides for it, for either an indefinite or defined term (in your lease). After a time, generally a year the companies have to pay you a shut-in royalty. In my case the lease calls for a $5 an acre shut-in royalty with a two year allowable period. But then they can send the gas to market for a day and shut it off again for two years. As you have seen on this site in the Chesapeake Dec 2010 investor presentation there will be a switch to oil until gas prices rise. I believe companies will be drilling and securing their leases and it will be awhile before much of the NE gas goes to market. The infrastructure is not there and the demand is not there either.
Has anyone recived a check from royalties? I heard of two different people with two acres, one is getting $75.00 a month the other $750.00
Royalty checks can vary company to company. Lease to lease. Different things are allowed to be deducted from your royalty check in the way of post production costs. Different companies deduct different things, in most cases there is no way to verify the deductions and the company may not have any obligation to tell you what they have deducted. Some are better than others. I have done some rough figuring of comparable acerage in comparable units, yielding comparable volume of gas and one parcel paid $400 while the other paid $4,000 per month. Of course this was with different companies. The problem remains that most of the time the burden of proof lies on the landowner to dispute the amounts paid and generally it requires an audit of the gas company which is a costly proposition for an landowner. When you compare royalty checks you have to make sure you are comparing equal percentages of the units and equivalent volumes of gas. It isn't to easy to do but it can be done.
Any one have a figure per acre, per month on an average producing well at today's prices?
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