How can you verify that the operator is paying you correctly on your royalty---- - GoHaynesvilleShale.com2024-03-28T17:35:26Zhttps://gohaynesvilleshale.com/forum/topics/how-can-you-verify-that-the?feed=yes&xn_auth=noYou should look at (1) deduct…tag:gohaynesvilleshale.com,2010-08-19:2117179:Comment:15193442010-08-19T16:08:06.026ZOG Royaltyhttps://gohaynesvilleshale.com/profile/DCaruso
You should look at (1) deductions and the reasonableness of the deductions and (2) pricing, especially with respect to an operator's hedges of the gas price. You will be amazed!
You should look at (1) deductions and the reasonableness of the deductions and (2) pricing, especially with respect to an operator's hedges of the gas price. You will be amazed! JD, it is unclear if Chesapea…tag:gohaynesvilleshale.com,2010-08-05:2117179:Comment:14951422010-08-05T20:38:10.314ZLes Bamburghttps://gohaynesvilleshale.com/profile/LesB
JD, it is unclear if Chesapeake is selling to LD or that LD is simply providing transportation to the gas sales point.<br />
<br />
Assuming Chesapeake were selling to LD, if the pricing is done on a transparent basis (ie tied to a gas index price) then the transction could still be acceptable.<br />
<br />
Some companies may have marketing affiliates but prices could be a pass-thru from the downstream arms-length gas sales.
JD, it is unclear if Chesapeake is selling to LD or that LD is simply providing transportation to the gas sales point.<br />
<br />
Assuming Chesapeake were selling to LD, if the pricing is done on a transparent basis (ie tied to a gas index price) then the transction could still be acceptable.<br />
<br />
Some companies may have marketing affiliates but prices could be a pass-thru from the downstream arms-length gas sales. Les,
Don't you agree that CH…tag:gohaynesvilleshale.com,2010-08-05:2117179:Comment:14946632010-08-05T18:30:25.157ZJDhttps://gohaynesvilleshale.com/profile/JohnD
Les,<br />
<br />
Don't you agree that CHK selling to an affiliate, La Midstream, creates a conflict of interest?<br />
<br />
JD
Les,<br />
<br />
Don't you agree that CHK selling to an affiliate, La Midstream, creates a conflict of interest?<br />
<br />
JD No matter the language, the c…tag:gohaynesvilleshale.com,2010-08-05:2117179:Comment:14944662010-08-05T17:06:57.323ZKat Bloomfieldhttps://gohaynesvilleshale.com/profile/Caliente
No matter the language, the circumstances are always different.<br />
And, admittedly, I did nudge ya a bit . . .
No matter the language, the circumstances are always different.<br />
And, admittedly, I did nudge ya a bit . . . Les - As I stated, I wasn't m…tag:gohaynesvilleshale.com,2010-08-05:2117179:Comment:14944462010-08-05T16:56:45.938Zsesporthttps://gohaynesvilleshale.com/profile/sesportperson
Les - As I stated, I wasn't making a judgement call about the responsibility to disclose. I was simply stating the fact of what the goal is of business. And, yes, the term "cheating" applied to all businesses is broad as well as inflammatory.<br />
<br />
IMO, as it is the responsibility of the lessor to execute due diligence in leasing, the responsibility extends to being knowledgeable about and conducting a regular review of records & statements provided.<br />
<br />
And never stop wondering or questioning ...…
Les - As I stated, I wasn't making a judgement call about the responsibility to disclose. I was simply stating the fact of what the goal is of business. And, yes, the term "cheating" applied to all businesses is broad as well as inflammatory.<br />
<br />
IMO, as it is the responsibility of the lessor to execute due diligence in leasing, the responsibility extends to being knowledgeable about and conducting a regular review of records & statements provided.<br />
<br />
And never stop wondering or questioning ... in a civil manner, of course. lol<br />
<br />
80) Kat, sorry about taking your…tag:gohaynesvilleshale.com,2010-08-05:2117179:Comment:14944062010-08-05T16:42:43.901ZLes Bamburghttps://gohaynesvilleshale.com/profile/LesB
Kat, sorry about taking your post the wrong way.<br />
<br />
I definitely believe royalty owners should be diligent in reviewing their royalty statements and question any prices or deducts that seem out of line.<br />
<br />
I wish the "standard" language in lease agreements regarding wellhead prices was clearer and not open to such individual operator interpretation.
Kat, sorry about taking your post the wrong way.<br />
<br />
I definitely believe royalty owners should be diligent in reviewing their royalty statements and question any prices or deducts that seem out of line.<br />
<br />
I wish the "standard" language in lease agreements regarding wellhead prices was clearer and not open to such individual operator interpretation. JD, I would just suggest you…tag:gohaynesvilleshale.com,2010-08-05:2117179:Comment:14943882010-08-05T16:35:34.141ZLes Bamburghttps://gohaynesvilleshale.com/profile/LesB
JD, I would just suggest you take a few months of royalty statements and compare each month's "wellhead" price to the final NYMEX settlement price for that month. It should give some idea of the differential to NYMEX (ie 40 cents below NYMEX). For future months you can use this diffential to estimate what should be a reasonable wellhead price based on the final NYMEX settlement price. You should also be able to obtain the gas production volume from Sonris (or TRRC) as a check.<br />
<br />
Also, once you…
JD, I would just suggest you take a few months of royalty statements and compare each month's "wellhead" price to the final NYMEX settlement price for that month. It should give some idea of the differential to NYMEX (ie 40 cents below NYMEX). For future months you can use this diffential to estimate what should be a reasonable wellhead price based on the final NYMEX settlement price. You should also be able to obtain the gas production volume from Sonris (or TRRC) as a check.<br />
<br />
Also, once you calculate this differential you can ask the operator for information that may help explain how much is related to transportation costs versus other deductions. Gotcha. I meant nothing but h…tag:gohaynesvilleshale.com,2010-08-05:2117179:Comment:14943392010-08-05T16:16:02.784ZKat Bloomfieldhttps://gohaynesvilleshale.com/profile/Caliente
Gotcha. I meant nothing but humor. That said, yours is a voice most listened to on this site. Your comment suggested nothing irregular ever occurs between operators and mineral owners on royalty payments and that simply is not a true statement.<br />
Peace
Gotcha. I meant nothing but humor. That said, yours is a voice most listened to on this site. Your comment suggested nothing irregular ever occurs between operators and mineral owners on royalty payments and that simply is not a true statement.<br />
Peace Sesport, I definitely underst…tag:gohaynesvilleshale.com,2010-08-05:2117179:Comment:14943272010-08-05T16:11:00.677ZLes Bamburghttps://gohaynesvilleshale.com/profile/LesB
Sesport, I definitely understand your point. Yes - a company's first obligation is to maximize value for its stockholders. But that does not support statements that all companies are trying to "cheat" mineral owners. That statement is just too broad in its reach and coverage.
Sesport, I definitely understand your point. Yes - a company's first obligation is to maximize value for its stockholders. But that does not support statements that all companies are trying to "cheat" mineral owners. That statement is just too broad in its reach and coverage. Les B,
What are the shortcut…tag:gohaynesvilleshale.com,2010-08-05:2117179:Comment:14943222010-08-05T16:09:33.636ZJDhttps://gohaynesvilleshale.com/profile/JohnD
Les B,<br />
<br />
What are the shortcut methods you speak of?<br />
<br />
Thanks,<br />
JD
Les B,<br />
<br />
What are the shortcut methods you speak of?<br />
<br />
Thanks,<br />
JD