Back in March 2019 there was an entry that TennisDaze answered about different NGL prices:
"NGL is natural gas liquids which are removed from the gas in processing at the plant and sold separately from the remaining ‘dry’ gas.
Composed of butane, ethane, isobutane, etc. NGLs are priced in gallons and are very different from the gas which is priced in mcf. Some operators will gather all the sales together and enter as a total gas sales on your check. Others will have separate lines for the gas and the liquids as a total. Some operators further separate the liquids into the components. Ethane has a particularly low price as there is an overabundance and that is likely the $0.29 price."
Here is a copy from part of my statement - would the reason the two overrides of same % on same well for same month have two different prices be due to this above? They are both under the same LNG with no determined breakdown heading - two overrides - same interest same month - diff prices paid. Thanks!
Do you have a separate line for gas? Wondering if the LNG means liquids and natural gas rather than only natural gas liquids. Or there could be a partial breakdown between types of NGL which have very different prices. (Ethane has lower value than butane, isobutane, etc). There should be a code interpretation somewhere on the check detail. Or ask the operator. If this is Texas well, then you can look at TX CONG report to see reported sales for gas or gas & products. Compare total reported sales to combined sales for the two lines above. Also, some companies enter total gas production volumes and sales to derive the price. Instead of using the gas volume left after processing at the plant tailgate. This will cause price to look lower. Example, 2,000 mcf produced and into pipeline. After processing and removal of NGL, there is 1,000 mcf left. Suppose sold for $4,000. This price for 2,000 mcf is $2 and price for 1,000 mcf is $4. This is another reason to audit by looking at TX CONG report. If in another state, you may need to get the gas plant report, which the operator may not be willing to give you.
