Just got notification on July payment from Antero and the deductions were over half of the payment. Anyone have any idea what is going on? Seems a little excessive.
Ours have been like that since November. Deductions are over 65% of our royalties. We’ve been asking and no answers. It’s definitely not the price of oil or gas.
We have been getting multiple checks/payments the last few months some with no deductions and some with high deductions. My best guess the no deduction payments are back pay for the new units ELKLICK and SMELT that we recently signed DOs for. Then possibly they are taking the back pay from the current production checks. That is just a guess.
Accept my apologies if this is off-topic, since the discussion is focused on the deductions. I was curious as to why my royalties had dropped so drastically from what they were last year. I was able to find some articles that helped me to understand why. One of them is dated July 20, 2023, Wall Street Journal, titled “Why this Heat Isn’t cranking up your gas bill” written by Ryan Dezember. Generally the prices have dropped drastically since the demand (unusually warm weather last winter) causing a surplus of gas which resulted in decreased prices. A lot of gas went unburned. The article does a good job explaining the supply/demand details. In the WSJ There is another article written by the same author entitled “Cheaper Natural Gas prices in Store this summer” that also explains things. It’s hard for me to believe that all of this doesn’t have an affect on our royalties at the moment. My take is things will eventually turn around when the surplus is burned up.
Keep in mind deductions tend to be partially fixed, so even if prices fall they stay around the same. Not fair, but thats how it is as generally pipeline infrastructure & transport & processing are long-term contracts and do not vary much with NG/Oil prices
Check your lease to see if you have deductions allowed for your oil. Does your lease say “net” or “gross”. The taxes are probably legitimate. It is the marketing, sales, transportation, etc. that you have to watch out for.
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We have gross and no fees and they still take them out and supposed to be paid at well head but they’ve never lived up to it. They had class action lawsuits against them for doing this but have not heard anymore about it like it just disappeared. All the fees that they take out is reported to the state as income for you. We met with the county and they had filed a suit against antero for doing that and won but the legislature overturned it.
last year GAS WAS $9.00 THIS YEAR GAS IS AROUND $2.50 ,GO FIGURE THAT"S .WHY YOUR PAY CHECK IS SMALLER.
Those are spot Henry Hub Lousiana prices, so WV prices will vary depending upon your takeaway capacity and local contracts. But gives the gist of the situation.
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@Arnold_L_Stuart Natural Gas has never been much of my Royalties. It’s mostly been from oil. Starting in November 2022 the oil started deducting over 68% of the Royalties for their post production costs. They claim it’s allowed in our leases, however the proof they sent was not from the lease on the areas affected be the severe decrease in Royalties.
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