Sunday's Express News had a paid advertisement directed at royalty owners who feel underpaid by Chesapeake. My question is how does a royalty owner determine if indeed they are being underpaid? We all know the price of a barrel of oil is down on both the WTI and Brent http://www.bloomberg.com/energy so it follows royalties will not be as much as 2008, 2009, or 2010 when it was as much as $114 per barrel.
The advertisement was paid by attorney John Petry (among others) a well- known Dimmit County attorney who will be holding a Town Hall Meeting in Carrizo Springs on Sept. 12, 2016, and another meeting in Cotulla the following day. From this advertisement, I am assuming Dimmit and La Salle royalty owners are feeling underpaid.
However, as an owner I am confused because monthly reports available on the TRRC website give detail account as to monthly production and disposition. I guess/estimate the price of a barrel of oil during that month and calculate royalties. Usually I am only a few hundred dollars off the actual check sent by Chesapeake.
So, again, how do I determine if all these figures are correct and if I am being underpaid by Chesapeake?