What Price Are You Getting for Gas? Last Update: March 25, 2011

Hello Everyone,

 

Here are the latest numbers.  If anyone else wishes to participate and provide data for my survey, please follow the instructions below.  I welcome all data.

I am now asking each respondent to provide me the following:

Section/Township/Range -- everyone (if you are in Texas, tell me your county, and the survey)

If you get your check from Chesapeake, please tell me:
Price received (before severence tax)
Does your lease entitle you to cost-free royalties?

If you get your check from one of the others,  please tell me:
Company you leased to
Company who is operating the well
Gross price
Please tell me each deduction, and the amount.
Net amount (before severence tax).  [I know, gross minus deductions ought to equal net, but I just want to make sure.]
Does your lease entitle you to cost-free royalties?

If you are WI or UMO:
Company operating the well
Gross price
Please tell me each deduction, and the amount.
Net amount (before severence tax).  [I know, gross minus deductions ought to equal net, but I just want to make sure.]

Please send me the information via GHS email.  This discussion is getting too large, and sometimes a post gets lost if I don't check in for 24 hours.  All info will be kept confidential. I will continue to post back what I learn periodically. Thanks in advance.

Tags: Are, Gas?, Getting, Price, What, You, for, payments, royalty

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Replies to This Discussion

Permalink Reply by Henry on October 1, 2010 at 0:49
VSC,
Nope. I'll be updating the file today. But I will need July data from all respondents, and any data that new respondents can provide to me. Look back later today.
Permalink Reply by Linda Whatley on October 1, 2010 at 3:24
Permalink Reply by Henry on October 1, 2010 at 4:16
The latest data are at the top of the page, contained in the attachment. As usual, I'm repeating myself: I NEED MORE DATA. Will all respondents please update me with their July numbers, if you haven't done so already? Thanks.
Permalink Reply by Henry on October 6, 2010 at 23:10
Hello Everyone,

A brief update... One of our CHK respondents has already received corrections and back pay from CHK. The other respondent who is owed back pay should be sending me updated data in a few days. I will post the the new data early next week.

For the rest of you.... I hope you will take the time to update me with your July prices, if you have not done so already.

Thanks.
Permalink Reply by William Buffington on October 7, 2010 at 4:06
Section 19 16N 14W - Caddo
Chesapeake - No cost royalty
5/10 3.42
6/10 3.50
7/10 3.89

No deductions or taxes listed on payment stub.
Permalink Reply by Henry on October 9, 2010 at 6:38
William,
I am going to suggest that you are having deductions taken from the gross price of your gas. Your prices are right in line with what the CHK mineral owners, who are having deductions taken, are getting. You cannot tell from your monthly statement if deductions are being taken or not -- CHK reports only the price they give you, and you cannot tell how it was arrived at.

You need to go back to your lease and see if it calls for "cost-free" royalties. To know if you have this provision, you must have words to this effect:

"Royalties shall not be subject to any deduction of post-production costs, including transportation, dehydration, compression, treating and marketing costs. "

If you do not have these words, then CHK is within their rights to take deductions. If you do have these (or similar) words, you should call CHK and get your price corrected. Many royalty owners who have a lease that calls for cost-free royalties, are finding that they have to call CHK and get erroneous statements corrected.
Permalink Reply by Gary on October 9, 2010 at 6:12
Section 36-11N-15W. Leased to CHK under older lease but no expenses to be withheld,
09-09 $2.05
10-09 $3.23
11-09 $3.12
12-09 $4.07
01-10 $4.87
02-10 $3.72
03-10 $3.28
04-10 $2.78
05-10 $3.06
06-10 $3.10
07-10 $3.48

Section 1-10N-15W; Leased to CHK with newer lease with no expenses
02-10 $4.65
03-10 $3.89
04-10 $2.96
05-10 $3.42
06-10 $3.21


Regards,
Gary
Permalink Reply by Henry on October 10, 2010 at 7:38
Gary,
Please see my comments regarding William Buffington above, I believe you are having deductions taken out of your gross price.
Permalink Reply by Henry on October 9, 2010 at 7:39
I have updated the data.

William Buffington and Gary: You will find your data under the owners who do NOT have cost-free royalties. You see how your numbers fit in there. If you think your lease entitles you to cost-free royalties, you should contact Chesapeake to get it fixed.

The text in the post gives more explanations.

henry
Permalink Reply by Henry on October 11, 2010 at 11:57
Roy,
Please friend me, so I can discuss your wells with you and we can get your data posted correctly in my database.
Permalink Reply by Henry on October 21, 2010 at 3:25
I have updated the pricing data. But, I need more. Many of you have not yet sent my July or August data. If you can find time, please update me. The latest update is found in the discussion at the top of the page.

And, some good news... Two different people, who have spoken with Chesapeake, told me that Chesapeake will soon revise their monthly statements to show both gross and net pricing. The extra transparency will be good.
Permalink Reply by DrWAVeSport Cd1 on October 21, 2010 at 7:03
Henry,

Great work Henry! I hope to have Chk info in a few months (depending on Chk) and I will forward to you asap. Again, Thank You for your work.

All GHS royalty/WI owners, you are necessary for Henry's Haynesville Payor Project's success. Please contribute to this project. This is a great tool for all Shalers and is a nice "spotlight" on information that historically has not been shared among mineral owners. It is a new day!

GHShalers can even go a step further. Ask a friend, neighbor to contribute. You can assure them of complete anonymity by sending Henry just the information listed on his spreadsheet.

Even if you have never before had the need to contribute to GHS or have strictly been interested as a reader only of GHS, here is a great way for all to help spread good data per all our best mineral interests. Henry's Project will become more important to us as time goes on and more data are compiled and shared. Sort of mirrors Keith's GHS Great Experiment!

Shedding Light On Anything leads to The Real Thing!

DrWAVeSport Cd1 10/21/2010

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