We finally received a royalty check on the gas well KC GU 1H.   It took awhile for things to catch up to us after my father's passing but is it fairly normal for payments to have started out big amounts and then dwindled to hardly any amount due to the price of gas now???  This well began paying in feb 2011 and by jan 2012 it was down a considerable amount.  this is our first dealings with royalties for a gas well so I am kinda flying blind on figuring things out.  Thanks for any input to these questions!

Amy

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Yes Amy, I would have to agree that some of the payments start out very high and

as time goes on, they shrink considerably. One of ours just faded away. The others are

still there, but smaller.

 

two reason checks declined--- the wells production depending on formation and location will decline as much as 80% or more in first year and second Nat gas prices are down 50% in past year. Your check can increase in future if prices improve and if price improve to point it's profitable for addition wells to be drilled in the unit.

Thank you for your input to my discussion.  I had a feeling it was due to a decline in prices.  I hope this one will keep producing some and in the future will be able to produce more. 

that well will be unlikely to increase production unless it has a problem when it was completed with frac job which is low possiblilty so you best chance to get increase is another well to be drilled in unit one day since this well will now HBP the lease. Who's operator and what survey well located in?--formation?

Another question on this well...... if we are getting a division order on our part of this well, does that mean another company will be paying the royalties or is this new company buying parts of this operating well???

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