Replies to This Discussion

Permalink Reply by Dolores Chobert on September 18, 2010 at 3:07am

Thanks for the info

Permalink Reply by Oil and Gas nightmare on September 17, 2010 at 3:49am

Thank you!!! I appreciate you being willing to share.. You read so much about how great it is and you look at the production rates, which seem really high. So it would seem that people would be getting 30,000.00 per month based on the production rates. I am trying to be realistic and not dream to much...so I am very thankful for your input. Does it seem to get higher as it goes or lower as it goes? This info is going to help me decide what is a good offer or not... thank you

Permalink Reply by hunter777 on September 17, 2010 at 5:33am

Here is a quote from this previous discussion:
http://gomarcellusshale.com/forum/topics/royalties-how-much-per-acre

"Here is a realistic example from NE Pennsylvania:

160 acre unit
15% royalty
5 MMCf/day initial production
$5.00 gas price

Using any royalty calculator:

Monthly income for the entire unit is $110,250
Divided by 160 is $689/acre

Remember that royalties can increase if the price of gas goes up,
and WILL certainly decrease WHEN the production declines."

In regard to the production of the well declining, you can figure that the daily production at the end of one year will be about one-fourth to one-fifth of the first day's production, which will accordingly affect the amount of the check.

Hope this helps

Permalink Reply by Oil and Gas nightmare on September 17, 2010 at 5:56am

Thank you so much...just curious and I am new so have mercy on me if this has been asked a million times but..what is the production unit mean? I have a 100 acres..so is the production unit what tehy use, like if they only use 10 acres, thats what I am putting in the online calculators? or is the production unit the unit required by the state or gas company like the have to have 300 acres to complete one unit and I have 100 acres of that unit? thanks

Permalink Reply by Oil and Gas nightmare on September 17, 2010 at 3:55am

also my land is in Greene county, but I live in another state. what I read about Greene county is pretty positive but I havent found anyone yet getting checks. Is Greene county in your opinion a great place to have land? And can any direct me to a way to deal with the coal bed methane and coal on the property? Its easy to find gas info but how do you figure out what your other resources are worth and how to even lease them? thanks again !!!

Permalink Reply by Dolores Chobert on September 17, 2010 at 4:14am

What township are you in. I'll check the RL store website for the map. to see how many wells are going in

Permalink Reply by Oil and Gas nightmare on September 17, 2010 at 4:34am

Jackson township :)

Permalink Reply by Dolores Chobert on September 17, 2010 at 5:34am

I can't copy the map. If you want to give me your email address I can send it to you. Problem is , I don't know if you want to put your email address out on the site for everyone to see.

Permalink Reply by Oil and Gas nightmare on September 17, 2010 at 5:51am

no problem you can send it to Joe30290@yahoo.com thank you so much..your very sweet :)

Permalink Reply by Dolores Chobert on September 17, 2010 at 6:42am

I sent it out a few minutes ago.

Permalink Reply by Oil and Gas nightmare on September 17, 2010 at 6:23am

also, i just posted a discussion about this but...what is a fair percentage for a lawyer getting you the contract, not just reading for you and securing higher $$$ for you...is 10% too high or is that normal? and when I say 10% he said of the % he gets us, so if he gets us 20% he gets just 2% and so on... I think in one way its ok becasue hey, its money that I am getting out of nowhere, but then my family(who have no experience in this area) think it may be to high...please help :)

Permalink Reply by Lynn Wigglesworth on September 17, 2010 at 6:36am

Would you be paying him 2% of your royalties? That would be a really bad deal; it could come out to thousands of dollars. My lawyer gets a flat fee ($250) for reviewing a lease and writing up an addendum.

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