Replies to This Discussion

Permalink Reply by Henry on February 7, 2014 at 1:37

Bill,

The "what price are you getting for your gas" thread has indeed dried up.  I collected the data and made the point.  It was more work than I wanted to do --  I had to go back to almost all respondents to ensure I understood the numbers that they were giving me, so I could report the numbers accurately.

I think Ronny has taken the lead on CHK's lousy gas prices for now on this site.  

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Permalink Reply by Bill McDaniel on February 7, 2014 at 2:23

So, does your personal check stub compared to Sonris look similar?  Nice to hear from you.  Any info would be appreciated.

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Permalink Reply by RONNY on February 7, 2014 at 10:45

My production numbers coincide fairly close to those reported on Sonris. 

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Permalink Reply by w.r. frank on February 9, 2014 at 10:24

Through January 31, 2013, the difference in volume is explained as follows: Volumes reported to LDNR and published on SONRIS are at the LDNR required pressure rate of 15.025 psi. Volumes reported by CHK on your royalty statement are at the Oklahoma pressure rate of 14.65 psi. To convert SONRIS volume to CHK reported volume, divide the SONRIS volume by .975. Small differences are decimal places differences.

For example, the september 2012 SONRIS volume is 91,290. Divide that by .975 = 93,631 vs the 93,573 on the CHK royalty statement.

I have no explanation for huge differences that started in february 2013. Just anoth way CHK is screwing royalty owners, BUT THIS IS REALLY BAD!

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Permalink Reply by Bill McDaniel on February 9, 2014 at 11:20

Thank you W. R. !  Now I understand the correct portion of the report.  Now on to finding out about the 77 million missing CF. 

Once again people who have the misfortune to have been bought out by CHK, does anybody else have the same thing going on?

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Permalink Reply by jim weyland on February 9, 2014 at 12:25

there are 3 pressure "bases" i know of: 15.025 psi, 14.73 psi and 14.65 psi.

a way to think about things is that 15.025 psi equates to the average observed atmospheric pressure at sea level. and, the higher the "assumed" elevation, the lower the "assumed" atmospheric pressure. i want to recall that OK uses a 14.65 psi pressure base and i believe TX uses 14.73 psi. and, for the record, converting from one pressure base to another doesn't cause mischief, it's just a ratio thing.

as explanation for the use of a pressure base, the observed gauge pressure at the measurement station is lessened by the assumed atmospheric pressure to arrive at the true measurement station pressure. so, is nw la at or lower than sea level? right, get the picture.

there are many ways in the gas business to "shave a little bit away" or to game someone. pressure base is one, although, it's being set by the states or the feds, offshore and indian lands, there's nothing for one to do about it but to take it or change laws/regulations/tariffs.

another neat measurement trick regards the assumed or base temperature at the measurement site. note:this is commonly 60 degrees F.  

do you think that where you are has an average 60 degree temperature over time? right.

 note: if the true average temp is under 60 degrees it favors the other party, if it's above, it'd favor you, the rio. note: often times the interests of the rio's and the producer are aligned, but in a situation where producer affiliates are handling the mid-stream operations, things aren't necessarily so, but, i'm sure you already may suspect as much. 

the periodic "pulling" of a gas sample for btu and liquifiables analysis versus having a recording calorimeter is another opportunity for mischief.

an ideal measurement set-up would have at the measurement point: 1) a gas volume meter and a back-up check meter, yours ideally, 2) a recording calorimeter/continuous sampler and 3) a recording thermometer.

as i mentioned previously, the pressure base is set by govt. the other variables, theoretically, are negotiable. (this applies to gathering systems not operating under state sanctioned tariffs)

in closing, the measurement station is your "cash register". properly set up and periodically recalibrated, with all parties having the right of inspection during those operations, it's your best friend. 

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Permalink Reply by Bill McDaniel on February 9, 2014 at 15:31

Thank you for your insight.  What I saw was "ways in the gas business to "shave a little bit away"".  How about 28% of the volume and 77 million CF? 

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Permalink Reply by jim weyland on February 9, 2014 at 16:32

bill,

i take your point, sir.

i'll just say that those whom would skin you for a dime, hypothetically speaking, would just as easily and w/o remorse skin you for a dollar.

jim

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Permalink Reply by Bill McDaniel on February 11, 2014 at 3:44

We found the answer.  Thanks to a neighbor who out of the blue received a division order from a company named Enduro LLC out of Fort Worth.  It seems that Enduro acquired about 28% in a number of wells in DeSoto Parish (don't know how many).  I was actually able to pick up the phone this morning and talk to a real person on the first try.  She told me that they are 'still working on title' and when its done they will send out division orders.  Some scary thoughts on this.  1:  Someone has been holding our money for around a year so far (isn't this against the law?)  2.  Why weren't we notified by CHK or Enduro (probably not CHK policy).  3.  How many deductions do you reckon Enduro will hit us with....and price???.  4.  We royalty owners had better pray Enduro doesn't declare bankruptcy before we are paid, else we go to the bottom of the bad debt pile.  

Thanks for the help and advice I got from you shalers.

Bill

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Permalink Reply by tony allen on February 11, 2014 at 7:09

This could be good news for those people with CHK as their operator.

http://www.bizjournals.com/columbus/news/2014/02/10/chesapeake-ener...

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