AboutCharles E. Felker Expertise Energy questions related to homeowners and their energy supplier.
Questions related to process control.
HVAC questions
Natural gas transmission, distribution.
Experience Penn State grad 1954 in Petroleum and Natural Gas Engineering. Forty five years experience in process control, natural gas processing, compression, transmission and distribution
Organizations ASME
Education/Credentials BS Petroleum & Natural Gas Engineering Pennsylvania State University
Expert: Charles E. Felker Date: 7/15/2008 Subject: royalty on natural gas well
Question Hi. I don't know if my first question made it thru or not, so I am re-submitting. If one had a natural gas producing well that has been producing for 14 years and no lease was signed and no royalties have been paid up to this point (to my knowledge), what would royalties be over the course of that 14 years? The well has produced approx. 2,500,000 mcf to my knowledge. There are 3.58 acres at 25% mineral interest or .895 net acres. 1/8 royalties were offered years ago (is that figured into the .895??). Anyway, the lease was never signed and I just wondered how much the royalties would be over that time frame. Thanks for your help.
Answer No, I never received your request. Mineral interest and Royalties are pretty complicated stuff and a good lawyer could better answer. Royalties are usually based on the gas produced and your well averaged about 500 MCFD, pretty good. At $4/MCF average well head price over the past 14 years (current pricing is around $10/MCF)and the 1/8 would be 1/8 x 2,500,000 x $4 = $1,250,000
