ROYALTIES? - The HuntingPA.com Outdoor Community
 
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post #1 of 10 (permalink) Old 11-19-2009, 11:37 PM Thread Starter
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ROYALTIES?

How does this work?I have been promissed 20% on 25 acres,the landman wouldn't give me an idea of what kind of money to expect.Any guesses?Thank you.
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post #2 of 10 (permalink) Old 11-20-2009, 12:47 PM
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Re: ROYALTIES?

a lot of variables go into it.

1. how many acres are in the unit, it's typically around 640, but can vary from 600 to 700

2. the price that nat gas is selling for. in the $4.00 plus range now, but can go higher /lower.

3. the percentage of royalty ( yours is 20%, state min is 12.5% )


a very rough guess for royalty payment is $100 per month, per acre. that is what i've seen on most royalty calculators on various web sights.

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post #3 of 10 (permalink) Old 11-20-2009, 01:07 PM
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Re: ROYALTIES?

Stormcrow.... you are going to get a wide variety of answers here. Like buzz said it has a lot of variables. the biggest on is if they drill a well and actually hit gas. Then your proportion of the unit.
One thing to go by: Dont spend it before you got it.

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post #4 of 10 (permalink) Old 11-20-2009, 01:10 PM
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Re: ROYALTIES?

Hey Buzz, quite a fancy new sign they put up at Bishops!

The wife and I had some business with the C-Peake people a few months back and while they were here they estimated the Well's Mountain site, potential income.

I don't know what calculator they used but the estimated "annual" figure was just shy of --- 21 million!

Nice to have 1,700 acres signed up eh?

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post #5 of 10 (permalink) Old 11-20-2009, 01:27 PM
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Re: ROYALTIES?

Since you are under 50 AC you get a percentage of the $$ generated by the well. The landowner, in your case group of landowners, normally get 12.5% or 1/8th off the top. Your dollar amount will be 20% of that or 2.5% of the dollars generated at the well.

There is no way that you can get a amount until the well is drilled and you find out how much you are going to get and that is still dependant on market prices so it will vary.

Every day you see it on the news. Another felons life needlessly spared by inaccurate fire.

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post #6 of 10 (permalink) Old 11-20-2009, 01:54 PM
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Re: ROYALTIES?

bowbum, yea, it is a nice sign and the price of coffee didn't go up to pay for it....yet

i dont know all the formulas to calculate the royalty's, but i do know that the Clapper wells that were just fracked by CHK, and put on line are producing 18 million cub ft per day. one is at 10 mil and one at 8 million.

the Chancellor well was put on line around March and i was told by CHK that in about 6 months it out produced the best well they have on line in West Virgina that has been online for around 1 1/2 to 2 yrs.

i've pointed this out before, but i will again. there is a website called "rlstore" , that is full of info about whats going on with the gas play. there is some free stuff, and it cost around $18 per year to join. if you have land or other interest in this, it is well worth the money. it shows all the permits and well locations, has maps, has question answer link, royalty calculator, is county and twp specific etc

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post #7 of 10 (permalink) Old 11-20-2009, 01:58 PM
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Re: ROYALTIES?

you get nothing for the gas comming out of the well. you gave up the rights to that gas when you signed the lease. the gas company gives you a royality for the gas that was taken from under your property. if you signed for a 15% royality, and say the unit is 640 acres, and say you have 64 acres in the unit or 1/10 of the unit. 1/10th of the gas comming out of the ground came from under your property, so, you would receive 15% of the 10%.
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post #8 of 10 (permalink) Old 11-20-2009, 02:33 PM
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Re: ROYALTIES?

Quote:
Originally Posted by bowbum
I don't know what calculator they used but the estimated "annual" figure was just shy of --- 21 million!

Nice to have 1,700 acres signed up eh?

that was the same guy having a fit about having to payback clean and green. they now have 5 well pads permitted with probly 6 wells per pad when their done. they are currently drilling or have drilled on 3 of them i believe.
i sure that charles will be fine, and his kids, and their kids etc etc

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post #9 of 10 (permalink) Old 11-20-2009, 03:11 PM
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Re: ROYALTIES?

Would've liked to stop in yesterday but had to hurry to pick my repaired air compressor motor up from Hortons.


Yup, that's him!
Here's another story about his legendary "frugality":

He called my neighbor's cell phone to discuss some business. I'm thinking you also know my neighbor, (Frankie C).
His call originated in Wyalusing but it is a toll call to New Albany.
He asked if Frank had unlimited calling on his cell, --- he said he wanted to hang up and have Frank call him back so it wouldn't cost him .07 per minute!!!!!!

Gotta laugh when a guy has soooooo much money that it is a full time job just worrying about losing pennies from it!
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post #10 of 10 (permalink) Old 11-20-2009, 03:57 PM Thread Starter
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Re: ROYALTIES?

Thanks Guys!That's good info.Maybe I can get a new truck!LOL
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