I was wondering if people have started getting royalty checks in Bradford yet. My husband and I own 25 acres and have negotiated 20% royalty along with a $5500 bonus. We signed last year. How much will we make in royalties? I know that there are many variables but I'm just looking for a ballpark. I know there are online calculators but I have no idea about some of the variables I need to input. If anyone can help me out with info, please let me know. Thanks!
Thanks, Alexandra. That would explain why the number is so low. A number closer to $600/acre/month would be much more within an anticipated ballpark.
I also have been able to learn Ms. York leased to Talisman, not to Chesapeake. This makes it more likely the acreage which is in a unit is within a fully developed unit. I'm downloading some information now which might (or might not) shed more light.
Finally got to the bottom of this. I appreciate the prodding. Needed it.
OK, here is what anyone will need to understand all this stuff:
Everything is explained by that appraisal, and a whale of a lot better than I can do the job. The actual data is there. I'll be studying it myself. It's a great learning opportunity, and not something that comes along every day.
You have asked the right question for which: Congrats!!
Your question reflects your knowledge and insight.
Regardless what some people believe, there can be well interaction in the Marcellus. This is betrayed by the following actual events:
In a blatant HBP (hold by production) effort, a drilling company drills but a single well for a one square mile DU (drilling unit). That one well is placed on line, produces natural gas, and the members of the DU collect royalty money. Such instances in Bradford County, PA, have resulted in very large royalties when considered on a "per well" basis.
Another drilling company, with a similar sized DU, goes to completion on the first pass and drills all eight wells planned for the DU . . . all at once. All eight wells are then brought on line and produce natural gas. Members of the DU collect royalty money from all eight wells.
It's at this point that things become interesting. Because the royalty money, on a PER WELL basis, is far less in the second instance. I, and others, believe this is because there is interaction (or interconnectivity) between the wells in the second situation. That interconnectivity is likely owing to naturally occurring fissures and fractures within the shale.
In addition, the implications of this interaction, which will vary depending on specific and local shale characteristics, are immensely important for landowners owning land in an undrilled DU adjacent to another DU which is being worked. And I cannot overstate the importance of this for unleased landowners whose land is nearby to an active DU.
Finally, this stuff is only just now becoming known, as drilling goes forward. Two years ago I believed such things, such interactions, impossible. I was wrong.
This is per acre included in a declared and performing well. There is NO Such other measure regardless of the "diner" talk below. Regardless of how many wells bores are used in any unit, the landowners share is the total of the gas at the well head. Again, there is NO such thing as any other measure. I have been told by the "diner" experts that you only get paid for the gas that is recovered from your own personal acres and of course that is absolutely false and ridiculous to even contemplate. How could anyone know how much gas was released from anyone's acre? It is impossible. It is just as impossible to try to state that gas moving from one well bore to another within the same drilled unit could somehow change the royalties earned at the well head.
Again, you are trying to manufacture a number that will never exist. $300 to $1500 is actual checks received by real landowners. If $300 is from one well bore, then those checks should increase if more bores are drilled. If the $1500 is from a well with all bores completed than that is all they will receive for awhile. BUT there is NOTHING that a landowner can do to change the current status. So cash the checks, save a third for taxes and enjoy the money while it comes. Too many people think they can compete their wells with someone else's when the bottom line reality is very simple: You have what you have and you have NO affect on anyone else's wells or finances. Regardless of who the company is as the operator, you have nothing that you can do to change the drilling schedule, or the drilling unit, or the count of wellbores. If you signed with Chief, you will be part of a larger unit that is always inefficiently drilled and resources left in the ground. If you are with Chesapeake, you will
earn royalties from a much more productive unit (per acre). These are measured facts based on public record. But regardless, there is still nothing a landowner can do to change their future.
Just found out we were pooled, Chesapeak traded for our lease. Looks like two pads on the 652acres. How long do you think it will take for the checks to start rolling in. How much an acre in the Smithfield/Ulster aera ??????? Just wondering.