I just received my first royalty check from EOG and do not understand the production figures.  When I compare them with the figures reported to RRC they are not even close.  Should they not be the same or is there something else I need to understand about the reporting system?  This is my first royalty check ever and I sure have a lot to learn.  Help please.

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Donald, your questions are better asked in the appropriate Texas County group.  Find the group for the county where your well is located, join and re-post your question there.  I bet you will get plenty of help from the knowledgeable E. TX. members.  Good Luck.

Thanks, I'll slowly learn how to maneuver around this site.

His question is not necessarily County or well specific Skip.  If everyone only post in groups they are members of then the rest of us may never see the discussion.

I agree - while I can see the argument for putting it in the group, I'd like to hear the responses to his question.  I had the same question when I got my first royalty check and frankly, I was too proud to admit I did not understand it one little bit!!  I am here because this stuff is still new to me.  It may be for many people who read but don't post much here.

Depends on what you wish to accomplish.  When a new discussion is posted to the Main Page, you don't receive an email alerting you to it.  Then it becomes a question of whether it will receive any responses before it rotates off the Main Page and into the Archives where 99+% of the site members will never see it.  I always lobby Keith to allow as many discussions as possible on the Main Page but he has a lot of other content he wishes to display there for business purposes.  When a new discussion is posted to a group, every member of that group is notified by an email.  So the advantage is twofold; more members see it and they are the members who share an interest in the subject and likely have a comment or answer to offer.  If you spend enough time on the site you will notice two things:  newbies posting a question in a Blog that only appears in the recent activity column and sometimes is on the Main Page for less than fifteen minutes and Main Page discussion topics that rotate off without a response.

ah, i did not realize the group email feature although I am sure I've gotten them myself in the past.  That is a fairly good system.

Some of us check the Main Page frequently enough that we rarely miss a discussion but the bulk of members who do not log in once a day tend to regularly miss discussions that rotate off the  page.  When asking a specific question, particularly where location is key, the groups are the best part of the site to have it seen.  And not lost as the group discussions rotate off the group pages at a much slower rate.

Donald, your royalty payment would be based on your tract's share of the unit production.  So if your lease covers 50 acres in a 500 acre unit your royalty should be based on 10% of the production.


You can also be impacted if there is more than company in the unit.  If EOG has leased 250 acres in the 500 acre unit then they would be entitled to sell 50% of the production.  But if they only sell ("take") 40% of the production in a given month then this would impact the royalty payment.

Donald, I believe Les ment to say that you would receive 10% of the royalty in your lease, i.e., 10% of a 1/5th royalty, or 10% of 20% of production from the unit,equals 2%/0.020 times production.

Robert, no - his royalty would be based on 10% of the production.  Then his specific royalty percentage would be applied to the revenue generated from the tract's allocated production.


Production volumes shown should be the total volume or EOG's share rather than a royalty interest share.

which county/which well

Another factor to be aware of, if yours is a gas well, if that operators typically will adjust for MMbtu value which is how production is sold, while production is reported to the TRRC bt MCF (thousand cubic feet).  In the Barnett, the gas is fairly dry and has a high btu value, but operators are still only crediting for .097 or so percent value.  In other areas, where the heating value of the gas is lower, there will be a lower conversion factor.  Section 91.502 of the Texas Natural Resource Code sets out the parameters the check stub must disclose and Section 91.504 allows a royalty interest owner to request additional information, including the heating value of gas sold.  Another reason may be that operators are discounting for "lost and unaccounted for" gas (aka "line loss") from point of production and sales meter. 



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