I was just wondering how fare your land can be to recieve royalties from gas wells.. Are land is leased, and we have one well, 5/10s of a mile away, and a second, less then 600yds away.. Furthermore, if you dont mid sharing the info, how much money do you recieve in royalties a month? and how does it work?
Royalties are set up by a unit and the units run basically NE & SW here. The unit I am in runs approximately 1 mile SWand 1 mi NE from the well. But an adjacent property due E of the well may not be in that unit.
I don't receive any royalties as yet as the well is just being fracked now. but there is still no pipeline either so until there is a pipeline and the well is on line and in production no royalty.
Now if you are in a well unit it will be filed with the county and you should receive notice from the company you are leased with.
The amount you receive depends upon the amount of acreage you own within the unit. the total acrage of the unit and theprice of gas and the percentage of royalty you signed for.
Remember it is not the amount of land you have under lease but the amount of leased land that is unitized in the well that counts for royalty.
I should add that the particular pad I'm in has 8 wells 4 go North and 4 go south but the entire unit is approximately 1000 yards wide and approximately 2 miles in total length
I work for a company sub-contracted by Talisman Energy to do surveying and engineering work. I also am a lease holder with Talisman Energy. The royalty numbers I've heard for lease holders of large tracts of land (Talisman, Cheasapeake, etc.) have been upwards of $90,000 per month. Of course the government will take their share of that...
Those are extreme cases with big holdings but with the increased number of well heads on the pads the overall royalty payments will be higher than before. They haven't begun drilling on the pad that supplies my unit so I can't give a solid number for an acre of land and it would vary by contract anyway.