Martha ... Thanks

My real question was just how a wellhead price is determined. From what I have been able to tell, under Louisiana law, the wellhead price is whatever the o&g company sold the stuff for minus deductibles which would include pipeline charges, Henry Hub charges, compression, cleaning, and the like. The question is "what is the stuff sold for". In some states selling price can be index based (e.g. - local market hub spot price). The national average isn't a good indicator of what we would get in DeSoto. I also understand that the price will vary across o&g companies based upon whatever contracts they have in place.

By the way, you forgot depletion allowance in your calculation.

Regards ... gregory