How much are deductions draining your royalty check?

We seem to hear alot about Chesapeke siphoning off alot of deductions from royalty checks. How are the other gascos treating their landowners? Shell , Range , Hilcorp , Chevron , etc. , etc.?

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Permalink Reply by bo boboski on July 15, 2013 at 10:07pm

You are SOOO right!  It"s like asking someone how much their paucheck is, and how much are the deuctions on it.  It seems to be an invasion of privacy. Folks may not know that they can post on this site with a screen name,so their real identity is not revealed. OR, they can just post the percentages,not the amounts.  We would all like to know what others are dealing with. What to expect with our royalty checks.when & if we ever see any!

Permalink Reply by Frank Walker on July 16, 2013 at 12:45am

Agreed.  It's always such a hoot when people post on the net using their actual, real names.  Some folks are right off the turnip truck!  But you have to concede, unwillingness to post information here, even percentages as you suggest, is a wonderful advantage for and help to the gas companies.  When we starve ourselves, we are feeding them!

Permalink Reply by Paul Martinelli on July 16, 2013 at 1:30am

All that is required is to give a %    that is taken out........

Permalink Reply by Joseph Bongiorni on July 19, 2013 at 4:07am

  21.5 %  taken from royalty check of 12.5% of production last year from Range..  I'd say a pretty large hit!

Permalink Reply by David Allen Lilly on August 28, 2016 at 1:45am

Joseph, they more pertinent thing would be if your lease allows these deductions ?

Permalink Reply by Jeff Kerr on September 6, 2016 at 9:25am

I have not got a check for 9 months our well is curtailed but the well watch says rice is making money on it  if our well is one that is producing of the 2 in springhill twp. 

Permalink Reply by bungalow_steve on July 16, 2013 at 3:00am

It's a generational thing, young folk will frequently post on facebook personal information that old folk would only reveal to their closest friends in a private setting. Private information becomes meaningless when everyone posts it I suppose.

Permalink Reply by David Allen Lilly on August 28, 2016 at 1:44am

I use my real name and location willingly, hoping it adds a degree of credibility to the comments I make.

There is far more disinformation than credible information being shared here because if I have learned nothing else about comment threads and such on the internet you can be whoever and whatever you want to be without possible verification.

Permalink Reply by MaryJane Reynolds on July 23, 2013 at 5:53am

An itemized statement of the royalty payment might be more helpful.  You  should be entitled to this information under your lease agreement,

Send a letter to the producer asking for an itemization of each adjustment to gross revenue used to calculate the royalty payment.  Ask for an explanation of the adjustment and the data used to calculate the reduction.

Perhaps you can get other producers (with the same royalty clause) to ask for the same information and share it with you. It should let you see if the producer is consistent in the adjustments being taken from various royalty payments.  It should also shed light on the methodology used to calculate the market price.

Most likely, you will need to go back to the producer for mare information, but this should let you get a pretty good feel for what is going on with respect to the royalty calculation. 

Permalink Reply by Larry Livengood on July 23, 2013 at 6:15am

I contacted Chesapeake and requested this information.  They said they receive a notice from the gathering system which is operated by Appalachian Midstream Services, which is a subsidiary of Access Midstream Partners. AMS determines the cost to build and operate the system, and sets the rates.   So far, no response from that company.  

 

Permalink Reply by MaryJane Reynolds on July 23, 2013 at 6:23am

Chesapeake is dodging the question.  It must have the data from the gatherer that it uses to calculate royalty because it, not the gatherer, is liable for the royalty calculation.

Permalink Reply by daniel cohen on July 23, 2013 at 6:29am

Appalachian Midstream Services, which is a subsidiary of Access Midstream Partners. AMS determines the cost to build and operate the system, and sets the rates.. Aren't they both wholly owned by CHK? If so, shouldn't the odor of fraud trigger the A-G?

Dan

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