Muskingum Watershed Conservancy District sees drop in royalty payments
Tuesday, August 25, 2015
Muskingum Watershed Conservancy District, which serves 18 counties and more than 2 million residents, isn’t making as much money from its Utica Shale wells as it once did.
The Repository reports that MWCD expects to receive $7 million in royalties this year, but by June only $2.6 million had been collected. Last year, royalty payments totalled $11.2 million. With the falling prices of oil and natural gas, royalty payments have decreased with slowed production.
A large number of property owners in the district annually pay a $6 assessment, which is used for controlling flooding and improving water quality. The assessment fee was $12 annually before royalty payments began, and even though they have slowed, the assessment fee will remain at $6 per year.
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Shale FAQ
How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
Are my royalty payments transferable?
Yes. If you plan on selling your property, notify the gas company that is leasing your land and your realtor. They will make arrangements to allow the royalty payments to transfer to a different land owner.
What are royalties?
Royalties are payments from the gas company to the landowner as part of a lease agreement. Royalties payments cannot begin until production begins. The payments are dependent upon the market price of the resource.