Shell completes sale of shale gas assets in Appalachia
Thursday, August 6, 2020
Royal Dutch Shell recently completed the sale of its natural gas assets in the Appalachian Basin to National Fuel, forfeiting its shale gas position in the Marcellus and Utica plays, according to Kallanish Energy.
The companies completed the $541 million cash transaction on July 31, but it has an effective date of January 1, 2020. he assets were sold to Seneca Resources Company and NFG Midstream Covington, which are both subsidiaries of National Gas Fuel Gas Company.
The assets included in the deal are located northern and western Pennsylvania and comprised of 350 active wells in the Marcellus and Utica shale plays that produce roughly 250 million cubic feet per day of dry gas.
Learn more: Kallanish Energy > Shell completes Appalachia shale gas exit
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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.