Question for the experts regarding royalties
Question for the experts:
My neighbors and I have noticed that our individual mineral interests on the latest royalty check stubs changed to a lower number. This is puzzling because the one thing that, we assumed, would be a constant is our mineral interest in the unit.
The size of our property does not change, nor does our percent of royalty. (25%)
What circumstances would cause our mineral interest or "payment decimal" (shown on our division orders) suddenly change to a lower number on our royalty payments?
Naturally, the price of NG changes as does the volume sold, which tabulates the net value but why would our interest in the production vary?
I did write to the Operator and the initial reply was.. "I have no idea". My reply that that was to request a referral to someone who would have an idea and could explain it. That request was sent to someone in "Production" and they sent the question to someone in "Revenue Inquiry" and copied to "Owner Inquiry DO" but there has been no response so far.
- My neighbors and I own property in only one unit. T 15 R 14 S19
- If the unit size (642) has increased, we are not aware of it.
- As per our lease agreement, there are no deductions by the operator.
There may be a logical explanation to this and we would really appreciate knowing the reason. Among the illustrious collection of experts within the halls of the GHS, would someone please help us with this mystery?
Thanks so much.
Views: 103
Replies to This Discussion
-
Permalink Reply by LP on
-
ah ...thank you Dion,
You have finally answered the rest of the question. My neighbors, along with me, wondered why we had to "pay" the "difference".
The amount, individually, isn't much but combining all of the landowners in the section, it does add up.
If we are paid less than we should be on the next royalty payment, we will take the issue further.
Thanks again. This is very helpful information.
- ‹ Previous
- 1
- 2
- Next ›
Support GoHaynesvilleShale.com
Top Content
Blog Posts
The Lithium Connection to Shale Drilling
Shale drilling and lithium extraction are seemingly distinct activities, but there is a growing connection between the two as the world moves towards cleaner energy solutions. While shale drilling primarily targets…
ContinuePosted by Keith Mauck (Site Publisher) on November 20, 2024 at 12:40
Not a member? Get our email.
Groups
-
San Augustine, TX
386 members
-
Miller County, Arkansas
27 members
-
Sabine Parish, LA
455 members
-
South Caddo Parish Group
440 members
-
Natchitoches Parish
400 members
-
Bienville Parish, LA
244 members
-
Fayetteville Shale
149 members
-
North Caddo Parish
358 members
-
Central Texas Gas
63 members
-
Cass County, TX
119 members
© 2024 Created by Keith Mauck (Site Publisher).
Powered by
