Replies to This Discussion

Permalink Reply by Dexter Green on August 8, 2014 at 7:03am

Did you ever receive and subsequently sign anything from Division Order?

Permalink Reply by Brian Werner on August 8, 2014 at 7:14am

No, Ive recieved nothing. But I'm in the Cairn 5 H unit also and never recieved or signed anything for it. But for the Cairn unit royalties began two months after production started.

Permalink Reply by John on August 8, 2014 at 7:44am

What township are you in? If you don't mind me asking, how much were royalties per acre? I'm in fox township and just received first check. Just under $/acre. Also, you need to inquire about division orders as you should have received them. If they are not signed and returned they will take out taxes.

Permalink Reply by John on August 8, 2014 at 7:45am

Sorry just under $100 per acre

Permalink Reply by Dexter Green on August 8, 2014 at 7:57am

How long have you been in the Cairn unit without being paid?  

Permalink Reply by Brian Werner on August 8, 2014 at 8:01am

I'm in Harrison Twp. For the Cairn well there were no papers signed, but there is a Declaration of Pooling and Unitization on file at the Carroll Cty courthouse. No taxes have been withheld for the Cairn well. The Cairn well has been in production for almost 2 years now. The max royalty was for the third month of production almost $500/acre. Current royalty is about $100 acre. Old 12.5% lease.

Permalink Reply by John on August 8, 2014 at 8:39am

good work. Consider yourself lucky. We in good lease with 20 %. Question, how much did your 2nd royalty check drop from first?

Permalink Reply by Brian Werner on August 8, 2014 at 8:59am

To Dexter's question: the Cairn well began payment 2 months after production started, which seemed reasonable to me. Assuming the 12 days of 1st qtr production from the Morshieser well were in March, then it has been over 4 months since production began and no royalty.

To John's question: the decline is quick at first and then levels off some. From the peak month the royalty dropped by 40% the following month, by another 20% that first year and down another 20% now at almost 2 years out (total of 80% drop from peak)

Permalink Reply by John on August 8, 2014 at 9:04am

thanks for info. So I guess my question is was your first check "the peak"? My first royalty check was supposedly for first 3 months of production, but having trouble finding out how many days of production that was. as stated, your numbers are considerably higher than mine. Hoping our wells are choked back or not much pipeline etc. Who the heck knows. It is a crapshoot all the way around.

Permalink Reply by Brian Werner on August 8, 2014 at 9:19am

I don't know how many days of production went into each check. I assumed the first check was a partial month so not really comparable. There seems to be a bit of variation in checks with: days of production, where the sale date falls and what the sale price was for the oil and gas. I think it just worked out that my highest check was the 3rd one. Two months ago there was no royalty at all for gas then it was back to a near normal level last month.

Permalink Reply by Judith Kohout on August 23, 2016 at 4:46am

Just call Chesapeake and ask them. I always call with questions and they are helpful