could someone explain to me how someone gets 100% royalties?
do they forgo the signing bonus and get their royalties after
production?

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Raymond, there is no such thing as 100% "royalties". Only leased mineral owners receive royalties. Unleased "carried" working interest owners receive production (revenue) less operating expense after the well cost has been paid for from your revenue.
Hello Mr. Mason , There is no such thing as 100 % royalty.The O&G's don't really want to give you the 25 % that they are agreeing too now !

When you hear someone talk about the 100 % thing they are forgoing any bonus money and are going unleased. Either consent or non consent. Consent means you pay your portion of well costs upfront and receive revenue from the get go. If you are non consent you allow O&G's to hold out your costs out of your portion of revenue until you get your part paid for.Some figures I have heard come to about a 25 % to 30 % shaving every month so in theory you would only get around 70 % or your share of procedes.

One of the main problems with being forced pooled ( not signed ) is that if enough of a section hold out then the O&G's cant drill ( 50% or so ). Even if they do have enough to drill but have too many holdouts it wouldn't be economical for them to drill. Why would they drill in my section if they could make twice the money right beside me in a section they had 90 % to 95% signed ? Its simple economics. Even though its my gas ,they want it and are willing to pay some for it . Not much but some. My gas is doing me no good while it sits in its current location. As you continue to hold out the offers will rise to the point where hopefully you are happy and can live with the decission that you have made to accept. There is a balance that must be maintained to make this a viable situation for everyone involved. Our happiness and theirs. Unfortunately I don't think our happiness is really on their minds.

This forum is an excellent place to educate yourself. Go back to some of the earlier discussions and start from the beginning. There is a wealth of info and many people that will be glad to help you on your path to understanding. Have a great evening and good luck.
Snake, I was wondering when an unleased landowner would receive consent/no consent offer or information. The well that Chesapeake is drilling in my section is between 5-6 weeks into the drilling and I have not had a offer and have not heard from the Chesapeake attorneys since late June when they sent me the required "Hearing Application" notice. I am in a section that is majority owned by 3-4 families and they didn't need nor seek my consent to drill. If an offer comes and if it is like the one in April of $300.00, I see no recourse but to sit tight, stay unleased and try to learn from this site what to do then.
Not sure exactly when but I do know that people are still contacted about leasing even after the wells come on line. Some of our other posters may give us more insight about this. I will do some checking Rick.
Snake..."My gas is doing me no good while it sits in its current location". Wellhead gas prices are down this week to around $9/mcf from over $13/per mcf two or three weeks ago. They are not expected to go lower, if they do, producers will cut back on production until they improve. With all the things going on in the economy (dollar depreciation, lack of credit, bank failures, less Canadian gas exports to US, decreased imports of LNG, demand for LNG from China, India, Japan, etc.) it is anticipated that gas could go to over $20/mcf or more on short notice. Some say there is demand destruction in US but nothing out there to substantiate this. More and more gas is being used to power electric generation and make nitrogen for fertilizer. If a land owner were to wait awhile, he may get more bonus and certainly more for his royalty interest, be it 25% of whatever.
By having enough acreage to form a unit and by paying about $6-7 million dollars
and drilling your own well. Hope that helps.(of course then you would have 100%
working interest and 100% royalty interest)
I was wondering the feasibility of this exact situation. Say you had a couple sections of property and were considering leasing one and going solo with the other. Snake, please comment. Thanks.
And I believe this is the CPL I was refering to ! Thank you Mr. McConnell but my wife would club me good over those basketball girls. She's not really a Caddy girl either but I do get your drift.
Have a good one.
Somewhere on this site a CPL stated that we shouldn't lease all of our land. Just 1/2 of it. You could then use your bonus money to help pay for consent costs associated with drilling. Sounds like a good strategy on the surface of it.The only downside that I could see was if they didn't drill your section under initial lease. You could however lease the other 1/2 of acreage if you felt the initial term was fixing to expire at a much higher rate then before hopefully.That could be used to offset the lose from first lease bonus.After initial lease has expired your strategy is back in full force. Something to ponder as I have nothing to do until my land becomes a point of interest for these clowns. You know , this game they are playing called "Where's the Hot Spot" and "Your Land is Worthless" could end up costing them billions.The more time that they spend being smug and disingenuous about this whole play , the more time we have to reach people and educate them as to the tactics that will be used against them. I know that they had me at hello and then dropped the ball. First time shame on you ! Second time shame on me !
Don, there would be no "royalty" interest. It is revenue.
Les,

Maybe one day people will realize that "royalty" is a term used when you lease...but does not apply when you are an unleased interest.

Keep trying to teach people the "lingo".....they'll catch on.
Les: If he was the lessor and the lessee (forms his own operating company) and gives himself 8/8ths royalty lease, He personally would
have 100% royalty and 100% revenue. His operating company would have
one hell of a write off . I was referring to how he could get the 50% royalty and suggested "why not 100%?" Many other liabilites, and problems with operating the well.....no??? My point being 'pigs get fat,
and hogs get slaughtered'. He would probably get the production casing
stuck in the hole about two joints off bottom, unable to fish out, have to drill a new hole, worse happens this time, on and on ............not to mention "what the heck is a 'salt water disposal well needed for'?" Get my drift now?? Simply trying to make a very valid point, that's all.

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