Replies to This Discussion

Permalink Reply by Mac Davis on December 7, 2009 at 9:03

Scott, if you think it's OK to pick the lowest price of the month to pay royalties instead of what you actually received, you're a crook.

• ▶ Reply

Permalink Reply by Scott on December 7, 2009 at 9:23

Geeze some of you guys are ridiculous. Now I'm being called a crook because wellhead prices bottomed in September and that's what was paid for your gas. Obviously that was the price paid for that gas at that time. If you have such a problem regarding it, hire an attorney. I'm going to leave this alone. Your not worth my time.

• ▶ Reply

Permalink Reply by Mac Davis on December 7, 2009 at 14:32

Only a crook if you think fraudulently "picking the lowest price of the month to pay you at the wellhead" is OK.

• ▶ Reply

Permalink Reply by Scott on December 7, 2009 at 15:03

What's funny is I get revenue check from a well on the same month at the same price, but you don't see me crying about it. It is what it is. I don't feel sorry for you.

• ▶ Reply

Permalink Reply by John Avatar on December 7, 2009 at 19:16

Gas is actually sold by the btu. If gas is richer than the required btu an adjustment is made for the difference. If the gas is leaner than the btu required, the same holds true.
Every pipeline carrier, from gatherer to the point of sale tap charges a transportation fee, which is deducted from the sale price of the gas. Every situation is different.

the figure you see on your stub is the net price recieved.

• ▶ Reply

Permalink Reply by Spring Branch,mineral owner on December 7, 2009 at 19:42

John Avatar, for my knowlege, why would the September price received for gas from one operator be $2.49 and from another operator be $1.97. I can certainly understand some cents difference, but a 25% difference in price is hard for me to understand. One is in northern Bethany-Longstreet and the other is in southern Bethany-Longstreet. I can't imagine there is that much difference in btu content.

• ▶ Reply

Permalink Reply by king john on December 7, 2009 at 23:35

springbranch, im not avatar, but i may be able to offer some insight. i recently had this same conversation with one of my operators. according to them, even though the gas flows 24/7, the price payed is negoiatiated only once a month. it may be loosley based on the spot price, but basicly the price payed is what is agreed upon by the operator and the owner of the pipeline. with that said how would any operator get the "best" price when they are limited to one buyer? this also makes me wonder how an operator takes advantage of a hedge price when the gas supposedly changes ownership once it enters the other companies pipeline.
king john

Permalink Reply by Mike Hudson on August 4, 2010 at 12:53

Spring Branch, I have 3 check stubs from a single well in one section, where Chesapeake is the operator.

The total net value of the well for the first three months by Chesapeak's figures are 2,023,986, 1,813,687, and1,656,323.

The first two amount are to leased mineral interests and the third one is to unleased mineral interest. Now which is the correct amount that this well produced?


How can a well have that much difference in the total amount of revnue produced from the same well during the same time period?

I for one am ready for a royalty governing and examination board for the individual mineral owners since we can get no help from the Louisiana Department of Natural Resources.

Permalink Reply by The_Baron on August 5, 2010 at 4:48

Mike,

I am curious as to your post, what was the price and btu value. any deductions? is the unleased owner being deducted expenses prior to the net?

Permalink Reply by The_Baron on December 8, 2009 at 4:18

Prices are typically set for an entire month. They do not change day to day.

• ▶ Reply

Permalink Reply by king john on December 8, 2009 at 4:26

thanks for the ditto baron. would you comment as to how that price is arrived at ? there are only two parties involved in the negotations and i am curious as to how everyones best intrest gets looked after. sorry to put you on the spot, but i feel you may have some insight.
kj

• ▶ Reply

Permalink Reply by Spring Branch,mineral owner on December 8, 2009 at 6:14

I am fine with the price of the gas I sell being determined once each month. No problem whatsoever! However, tell me which day each month that decision is going to be reached (third Thursday, first Friday, last business day, 1st business day...........I don't care, but do it the same time each month and base it on a price that is made available to the public over the internet or whatever. If it is all done in secret, at a price and time to be determined by the Operator, then I don't think.......I KNOW.....I'm being screwed..............and the only reason to keep it a secret is to screw me!

• ▶ Reply

• ‹ Previous
• 1
• 2
• 3
• 4
• 5
• …
• 9
• Next ›
• Page