Pennsylvania Message Board

We just received our first royalty check and would like to know any info about how the gas co figures in their exspnses and is this taken out all up front or is this something done every month?

The sorry thing about post production expenses is that it could threaten to take more out than you make. If it does, then you have a bonafide case to make that the well needs to be abandoned and the property given back.  At current prices, the cost - which is often fixed (the compressor uses X amount of gas, the treatment cost X ,etc) is getting dangerously close to eating up the entire gross....  I am always interested in getting copies of check stubs with high post production expenses. I have seen some with 30% and that's with the price of gas in the $2.90 range.  At half the price, it is in danger of exceeding 60%.