AboutLaura M. FitzGerald, CPL Expertise I can answer all questions related to any oil and gas leases, mineral sales, pipeline right-of-ways, LA Dept of Conservation Units; negotiating with landmen for leasing your property, assisting in locating owners of suspended funds.
Experience 26 years in the field and owning my own land services company; being a royalty owner, and participating in drilling wells
Organizations American Association for Professional Landmen, ArkLaTex Assoc. of Professional Landmen, and Dallas Association of Professional Landmen (DAPL), Women's Business Enterprise National Council (WBENC)
Education/Credentials Certified Professional Landman, attended LSU, Notary Public
Question Could you give us an example in Percentage differences in which royalties are calculated @ arms length non affiliate purchaser vs non arms length affiliate purchaser of gas. We are being offered 21% royalty. In a non arms length affiliate purchase what could be the % range for royalty? Is it really 15,16-20% versus a real 21%. In this case there are no other cost deducts.
Answer I'm going to try and answer your question, with what you have said above.
First of all, I think it's important for you to understand the difference between:
arms length non affiliate purchaser and non arms length affiliate purchaser.
Arms length non affiliate purchaser means a company that is not directly connected or an affiliate of the Operator.
Non arms length affiliate purchaser means a company that is connected and an affiliate of the Operator.
With a non arms length affiliate purchaser the price of the gas can be 'fixed' or 'controlled' by the Operator.
I believe you should ask the person who is negotiating this with you to explain it to you, and then if you'd like to present that information to me, I will be happy to help you understand it.
