It's getting alittle scary

Ngl prices are dropping every day. I know the panic button was pushed with a warmer then expected forcast. I'm sure it will go back up but what will this do to drilling, if anything.

Will this effect me possibly resigning in january wheny lease expires.

Any thoughts would be appreciated

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0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on December 25, 2014 at 1:48pm

Jason,

    If you had the actual sales and deductions from your producer as I have, you would find that your Royalty Statement will match only the last column of how much you were paid. At Buck Well 1H we have had deductions that total 147% of our NGLs which canceled out the oil and gas products sold.

We are being stolen from 4 times: 1) A bogus sale of products by the producer to their own company which is below market value and violates our lease "Arms Length Sale" provision.

2) Deduction for Energy, in addition to short changing us by using our natural gas free in violation of our leases.

3) Deductions for Affiliates, which is to pay for the Scio, Kensington and Natrium plants. Theft from landowners to pay off the books deals which now total $38 billion per CHK.

4) Processing of products, compression, and pipeline use, all 3 in violation of our leases.

All this means none of us are being paid for NGLs, in Ohio, in fact we are being penalized due to the cost of processing NGLs.

CHK was going to make a fortune while the politicians of Ohio either turned their heads or cashed in. Now they will all be crushed by OPEC and the landowners will know the truth sooner than planned well before CHK could make off with our well products.

I would rather have the minerals I supposedly own left where they are for future development by a Producer kept honest by enforced Ohio Laws and the ODNR, than to have them stolen by this new wave of theft in Ohio similar to what has been ignored by authorities across the country.

Permalink Reply by Joseph-Ohio on December 25, 2014 at 2:23pm
You paint a bleak picture Ron.
Permalink Reply by Frank Walker on December 25, 2014 at 4:40pm

This takes me back several years to a time when discussion centered on this assertion:

"The money is in the royalties"

Today, I think landowners realize the theoretical nature of that statement.  The money IS in the royalties, as opposed to our bonus payments, . . . . . . . . provided however that:

*the market for NG does not collapse

and provided also that

*we are not leased to a gas company intent on cheating us out of our just due through unfair confiscation of our royalties via "deductions"

Regrettably, today the NG market is not in the best shape, and several gas companies are already working hard to cheat us, while other gas companies look on with envy.

Personally, I never was able to buy into the "money is in the royalties" mantra.  I believed, and continue today to believe, a bird in the hand is worth two in the bush!

Permalink Reply by Joseph-Ohio on December 25, 2014 at 9:57pm
Agreed.

As it always was and ever will be.

Bird in hand / in the oven / on the table / on our plates / after supper - better than bird hunting by far.

Stick together.

Good luck to all of us - we need it.

All also only IMHO as always.
0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on December 26, 2014 at 5:58am

Joseph,

   The 6 months of sales Spreadsheet compared to my 6 month Royalty Statement for the same period tell the story.

Too bad the spreadsheet will not paste into this website. I've tried 4 times over a week and nothing shows up.

I'm sure the places I've sent it to got the scanned documents. I know which Ohio laws were broken so time will tell the future of Ohio's Shale Play.

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on December 26, 2014 at 6:20am

Thanks for the editing as always.

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