Gas royalty payments vary based on a number of factors
Tuesday, November 18, 2014
Gas royalty checks vary in amount from well pad to well pad, and that has to do with more than just a well’s production.
Weirton Daily Times reports that the size of the well, the type of lease, the production rate, what the selling price is, the royalty rate and the ownership of the well all affect the amount of royalty checks.
The type of lease — gross or net — influences royalty check amounts, and the rate at which the gas producer has agreed to pay for the product. Mineral rights owners should expect fluctuating amounts in their royalty checks due to varying production rates.
Via: Weirton Daily Times > Gas royalties can be big, but amounts often vary
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.
how do I find out what unit I may be in? I am in salem twp monroe county oihio
Hi Mr. Adamski,
The ODNR website houses information for the shale industry: http://oilandgas.ohiodnr.gov/.
You may also want to look at OSU Extension’s Shale Library for more information: http://serc.osu.edu/extension/shale-library.
Let us know if you have any other questions!
Katie
One of your reps has mentioned in the past that our lease would be including six cross creek wells. Don’t want to be greedy, but wondering if I heard right. Thank You, D Chambers