Curious if anyone else has NPRI in Loving county that has seen a large decrease in royalty payments even with oil prices high. Normally we would see a few small checks then they would pick up in about 3 months when oil was above 70. I haven’t got to look at the production or what they are paying on as im away from home for sometime now. I know EOG is a company that likes to pass those post production cost to the owners from reading online but not sure thats whats happening. Anyone else ? A family member did say the stubs show payment from a lot of older dates on them. Is production down ?
Wells normally decline in volume over time as the pressure depletes due to the production. Higher oil prices may not be able to compensate for that natural decline. Depending upon the area, gas takeaway may be an issue and any associated gas may have higher post production charges, so that may be another factor. You have to look at the production. What you see in the news as oil and gas prices are not necessarily the contract prices that your operator gets from the transmission companies.