Comment

Comment by scott jackovitch on December 20, 2010 at 2:24pm

Thanks Chuck,  Do you know if the leases that are being signed are for net or gross wellhead price ?

Comment by Chuck White on December 20, 2010 at 1:13pm

Scott

 

It was Knox Township in Jefferson County @ $1000.00 per acre.

Comment by Josh on December 20, 2010 at 1:05pm

Does anyone have any contact info on "Wishguard" I guess another group buying up mineral rights.

Comment by scott jackovitch on December 20, 2010 at 6:35am

Chuck what area is the 1920 acre pool in ?  Do you know what the per acre price was ?

Comment by Chuck White on December 20, 2010 at 6:05am

Chesapeake agreed to a 1920 acre pool that could contain several well heads shared by the pool members according to acres owned.

Comment by Dan on December 17, 2010 at 8:32am

Cathy, it doesn't matter if you have the wellhead on your property or not - that doesn't affect royalty.

The simple way to think about it is that everyone in the drilling unit(which for our purposes in talking about horizontal drilling in the Marcellus shale is typically around 640 acres)divides up the revenue from the gas production in proportion to how many acres they own in the drilling unit. Then you take that amount and multiply it by whatever percent royalty you agreed to in your lease contract, and that is what you get paid.

If they drill on your land, you get some kind of compensation for damage to your land, and perhaps free gas, depending on how your contract is worded, but that is all separate from the royalty calculations.

Comment by Cathy Galbraith on December 17, 2010 at 7:21am

Thank you JT I think that will be able to answer some of my questions.

Comment by JT on December 17, 2010 at 7:08am

Penn State has an excel royalty calculator available for download...

 

http://extension.psu.edu/naturalgas/royalty-calculators/pennstate-r...

Comment by Cathy Galbraith on December 17, 2010 at 6:57am

Does the land owner that the well is drilled on get 15% or a share also?

Comment by Nate on December 16, 2010 at 10:25pm

Depends on how many acres you have in the 640 pie. If you had 64 acres of the unit you would receive 10% of the 15% Royalty. Or 1.5% of the total wells production.

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