A large withdrawal and cold weather have dramatically increased prices for the very short term but it is music to m y ears.

Views: 300

Reply to This

Replies to This Discussion

Is that the February Henry Hub price to which you refer during the last five business days in January, Les? Do Operators in the Haynesville Shale use the Henry Hub price exclusively?
Devon uses the Houston Ship Channel Natural Gas prices for their royalty caluculations - first of the month price.
Does anyone know what EXXON/XTO uses for their royalty caluculations?
And when the pricing for the month is set?
Why would North Louisiana NG be based on Houston Ship Channel prices? The HA. Shale NG goes east to Perryville!
WR, it may be East Texas production.
Les, Do you know which price Questar uses to pay royalties? In NW LA?
Missy, unfortunately I do not have any information regarding which gas pipeline Questar utilizes for their gas sales. Their field gas price should be around Henry Hub less 20-30 cents and there may be additional deductions under the specific lease agreement.
Joanne, I would assume that would be gas sales in East Texas. Much of the gas sold in East Texas is delivered to Texas Intrastate pipelines and priced based on the Houston Ship Channel Gas Index.

For 2009, the Houston Ship Channel monthly prices averaged $3.78/MMBtu which was 20.5 cents below NYMEX. The pricing basis improved during the 2nd half of 2009.
Les,
Sorry for the confusion. Yes, the gas basing its price to the Houston Ship Channel is from East Texas...(Shelby County). It is good to know the structure of moving the gas. Thanks!
SB, there are ~ 70 Gas Index prices that are published each month based on the sales transactions during Bid Week. Henry Hub is just one of these Gas Index points. The various Gas Index points are located throughout the US in bothe producing areas and market areas.
Typically my experience as a royalty owner going on nearly 20 yrs is the checks are 3 months begins so in April you should see your january's production.
Commodity traders and gas futures speculators?

RSS

Support GoHaynesvilleShale.com

Blog Posts

Tuscaloosa Trend Sits On Top Of Poorest Neighbourhood For Decades - Yet No Royalties Ever Paid To The Community -- Why??

In researching the decades-old Tuscaloosa Trend and the immense wealth it has generated for many, I find it deeply troubling that this resource-rich formation runs directly beneath one of the poorest communities in North Baton Rouge—near Southern University, Louisiana—yet neither the university ( that I am aware of)  nor local residents appear to have received any compensation for the minerals extracted from their land.

This area has suffered immense environmental degradation…

Continue

Posted by Char on May 29, 2025 at 14:42

Not a member? Get our email.

Groups



© 2025   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service