Replies to This Discussion

Permalink Reply by 2pwyhp2o205y9 on September 9, 2010 at 7:43am

Good question......and I'd like to learn more....some are suggesting 5%...but where it comes from is another issue....or when it is taken....

if you have a good "no deduction royalty clause" i would assume yur royalty would be paid before severence taxes or any other deductions....

Permalink Reply by William Ladd on September 9, 2010 at 7:51am

I'm going to punch in that 5% in my spreadsheet to see how it works out.

Thanks M.R.

Bill L.
aka Bummy

Permalink Reply by 2pwyhp2o205y9 on September 9, 2010 at 8:04am

The sick thing is that the majority of the people in Tioga county that think they are going to get 12.5% AT LEAST, are going to get screwed because when everyone signed all those early leases for$35 and $85 dollars per acre, they signed away their right to audit and East/Shell will steal all they can get from them before they ever send out a royalty payment......people will be lucky to get 9-10% at best or even less....

Permalink Reply by William Ladd on September 9, 2010 at 8:53am

If that is all they leased for, then it is hardly worth going to the bank to cash their royality checks! By the time they pay taxes on their royalties they will be losing everything they gained and then some!

With the 30% taken off the top plus the 5% severence tax there will only be pennies left.


Bill L.
aka Bummy

Permalink Reply by 2pwyhp2o205y9 on September 9, 2010 at 8:58am

I assume the majority of people with Gas in Tioga County are at 12.5% and a bare bones lease that will make the O&G company rich and may prove to be the most profitable gas production area in the usa because of it.

Permalink Reply by Brian V. on September 9, 2010 at 2:09pm

Your assumption is mostly correct. You can blame good ol' Ms. Root. Her deal about 5 years ago took the $ from $10 to $65/acre, however most off her addendums are filler and basically written by East.

That is why it is so discouraging knowing that unleased acreage is being signed in Tioga daily. If people would quit taking ERM's offer then they would get a better offer and their neighbors with bad leases could also. Plus a bad lease (lack of effective clauses) could be felt by neighboring acreage within the unit if the company is allowed to just run rough shot.

Permalink Reply by William Ladd on September 10, 2010 at 1:11am

OK! Now I have another question.

What has been the average $$ value of gas paid at the well head per MMCF to drillers or drilling companies for the last few months?

For some reason I have not been able to find out that information.

Bill L.
aka Bummy

Permalink Reply by 2pwyhp2o205y9 on September 10, 2010 at 1:14am

$3.70 to $4

Permalink Reply by William Ladd on September 10, 2010 at 1:39am

I thank you kindly M.R. I thought it was a little higher. I wonder now if it will stay more or less constant or fluctuate wildly due to all of the new activity.

Bill L.
aka Bummy

Permalink Reply by 2pwyhp2o205y9 on September 10, 2010 at 1:53am

Go to Natural Gas Weekly

http://tonto.eia.doe.gov/oog/info/ngw/ngupdate.asp

Permalink Reply by William Ladd on September 10, 2010 at 3:56am

THANK YOU! THANK YOU! THANK YOU!

I really do appreciate the help you have given me.

Bill L.
aka Bummy