When you are negotiating your lease, be sure to review the royalty payment terms to see how the gas value you will be getting your royalty percentage of is to be calculated. In my part of the country, the land people don't necessarily know about the different ways gas can be valued, and if your gas has high NGL (gas liquids) content there could be additional value that neither you nor the producer is getting unless you are considering them in your contracts.

Some of the midstream companies who transport and process gas may say that these products are by-products and that there is a cost associated with "getting rid" of them, but there are different ways to "get rid" of these products and some can offer value above the price of gas. Producers and land owners who are knowledgable about the alternatives are in a better position to add value to these reserves which is important these days with gas prices as low as they are.

We are happy to hear from folks who need additional information around these issues.