I'm very new at all this but I need to know if anyone can tell me about additional wells in our section. Will we receive royalities from all producing wells in our section? If not, how is it determined who gets paid and who doesn't? Any help is greatly appreciated.
I'm not sure if everyone is getting a good idea of whether they are being treated fairly or not.
I know people are posting the price that their operator is being paid for their gas, but the questions left unanswered are many... such as where exactly are you located a well in the middle of nowhere isn't going to command as much as a well 100 yards from a processing plant. What is the quality of the gas the wells are producing some gas is dry enough you don't need any processing to move it on down the pipe other gas will need processing and the amount can vary... other than that I would expect a contract of any type would include a clearly defined price to be used... say the mid-point of the first of month index price of a given area plus or minus some amount to account for the location of the gas.
I'm baffled if all these contracts were so vague that a landowner can't subscribe to Platts and know the price that is being used.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More