# Bad sign... royality dropped 15k this month
**URL:** https://www.mineralrightsforum.com/t/bad-sign-royality-dropped-15k-this-month/50390
**Category:** Hughes County, OK
**Created:** [August 28, 2019, 4:20pm UTC](https://www.mineralrightsforum.com/t/bad-sign-royality-dropped-15k-this-month/50390 "2019-08-28T16:20:25Z")
**Posts on this page:** 9
**Page:** 1
### Author:  [@Fwp1031](https://www.mineralrightsforum.com/u/Fwp1031)
#### Post date: [August 28, 2019, 4:20pm UTC](https://www.mineralrightsforum.com/t/bad-sign-royality-dropped-15k-this-month/50390/1 "2019-08-28T16:20:25Z")
I have been receiving 20 to 25k the last few months. This month’s checks were released and mine was 6k. This is a major dip. Any idea what happened to cause a 15k dip for the month of August? Maybe time to look at selling.
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [August 28, 2019, 4:28pm UTC](https://www.mineralrightsforum.com/t/bad-sign-royality-dropped-15k-this-month/50390/2 "2019-08-28T16:28:13Z")
There can be several reasons for a dip. The first is natural decline of horizontal wells. They come on strong, but drop very quickly. However, after the first few years, the decline changes to a much shallower slope and the wells can last for decades. The second is a drop in prices. Gas has been hit particularly hard this summer. Hopefully, will pick up as colder weather comes in the fall and winter. Third, if they are hydraulic fracturing in wells nearby to you, your wells may be shut in for safety. See if the production volumes pick up in a month or so.
If you sell, you will lose those royalties forever and any potential royalties from further drilling. Find out what is going on in your area, what potential for future drilling may be and figure what your capital gains tax from a sale might be. Minerals may fit into a larger investment strategy.
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### Author:  [@Fwp1031](https://www.mineralrightsforum.com/u/Fwp1031)
#### Post date: [August 28, 2019, 4:37pm UTC](https://www.mineralrightsforum.com/t/bad-sign-royality-dropped-15k-this-month/50390/3 "2019-08-28T16:37:01Z")
Thank you. I emailed the drilling analyst. He said they are running a check on some second checks that may include other monies. Have you ever heard of that?
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [August 28, 2019, 4:50pm UTC](https://www.mineralrightsforum.com/t/bad-sign-royality-dropped-15k-this-month/50390/4 "2019-08-28T16:50:32Z")
It is possible. I have had to request payment and interest on a few wells in Hughes. One was seven years old. Received a nice interest payment on that one!
What section, township and range are you in? I can see how many wells are on your acreage.
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### Author:  [@Fwp1031](https://www.mineralrightsforum.com/u/Fwp1031)
#### Post date: [August 28, 2019, 4:59pm UTC](https://www.mineralrightsforum.com/t/bad-sign-royality-dropped-15k-this-month/50390/5 "2019-08-28T16:59:44Z")
12 7N 10E 1 7N 10E
Hughes County and Pittsburg County are also on the check stubs. 75 acres and 45 acres, around 120 or so total.
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [August 28, 2019, 5:27pm UTC](https://www.mineralrightsforum.com/t/bad-sign-royality-dropped-15k-this-month/50390/6 "2019-08-28T17:27:29Z")
You will find quite a bit of discussion on the Frances wells on the forum. Also the Clara wells. They are in section 12 and 1, plus 12 and 13. Ten wells. They went online in mid 2018. Not surprised they are dropping now. Natural to be declining by now. They have a lot left to give…
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### Author:  [@Fwp1031](https://www.mineralrightsforum.com/u/Fwp1031)
#### Post date: [August 28, 2019, 5:36pm UTC](https://www.mineralrightsforum.com/t/bad-sign-royality-dropped-15k-this-month/50390/7 "2019-08-28T17:36:50Z")
Having 120 acres though only collecting 6k is very low. To say the least, I’m disappointed in such a major drop that quickly.
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [August 28, 2019, 6:07pm UTC](https://www.mineralrightsforum.com/t/bad-sign-royality-dropped-15k-this-month/50390/8 "2019-08-28T18:07:17Z")
Fairly typical of horizontal wells. They have what is commonly called a “hockey stick” profile. The first few months-years are the shape of the blade. The decline is rapid but then the tail may last for decades which is the shape of the stick. Multiple sticks stacked on top of each other add up. Gas prices have been very low this summer. Perhaps they will pick up in the fall and winter with colder weather and a drawdown in reserve storage.
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### Author:  [@MRFAdmin\_SV](https://www.mineralrightsforum.com/u/MRFAdmin_SV)
#### Post date: [January 11, 2025, 6:08pm UTC](https://www.mineralrightsforum.com/t/bad-sign-royality-dropped-15k-this-month/50390/9 "2025-01-11T18:08:58Z")