Even a small rise in gas price can boost the royalty amount
I received one of my latest royalty checks the other day. The production date was around the beginning of February. Anyways, the selling price per mcf as listed on my statement was $4.84. This increase made my royalty check increase tremendously. This just goes to show that even small upward climbs in the selling price of natural gas can mean big rewards for leaseholders.
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Permalink Reply by 0ym9x5ag7ury2 on
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Zack I'm glad to hear there are still Producers that pay a fair royalty which allows you to see a change in your royalty when a product price changes.
At Buck Well 1H we get the same royalty if the price goes up, or the amount of product produced increases.
If the price goes down our royalties go down many multiples below the change in price due to the producer going into a panic and switching from Big Theft mode to Tremendous Theft mode.
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