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Permalink Reply by N Bohl on March 16, 2012 at 9:16am

Exactly. I'm not overly concerned that they would do that but I wonder if there have been any examples already in the Marcellus play where a company that leased the land sold the gas to a company it owned.

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Permalink Reply by Clinton44 on March 16, 2012 at 9:29am

We have a similar situation, Anadarko has a 50% partner in the drilling units that we are in. They pay that partner in gas, not dollars, that company in turn markets their share of the gas and distributes the royalties on that half  to us and actually there are times when their partner sells the gas at a higher price than Andarko is getting, which is a good thing!!. They also have a 16.25% partner whom Anadarko markets the gas for so Anadarko pays us the royalties on that 16.25%  

There are a lot of dealings that go on behind the scenes between these big companies it is all very interesting...

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