# Leon County Area Pipeline Capacity. 2023

**URL:** https://www.mineralrightsforum.com/t/leon-county-area-pipeline-capacity-2023/71266
**Category:** Leon County, TX
**Created:** [June 18, 2023, 3:28pm UTC](https://www.mineralrightsforum.com/t/leon-county-area-pipeline-capacity-2023/71266 "2023-06-18T15:28:32Z")
**Posts on this page:** 5
**Page:** 1

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### Author: ![Mineral\_Owner5](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/mineral_owner5/32/16262_2.png) [@Mineral\_Owner5](https://www.mineralrightsforum.com/u/Mineral_Owner5)
#### Post date: [June 18, 2023, 3:28pm UTC](https://www.mineralrightsforum.com/t/leon-county-area-pipeline-capacity-2023/71266/1 "2023-06-18T15:28:32Z")

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PIPELINES! I think that having the pipeline capacity to deliver or transport the high volumes of natural gas from the high producing, horizontal, Deep Bossier wells is critical to this play progressing very fast!

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### Author: ![Alan\_Herrington](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/a/b782af/32.png) [@Alan\_Herrington](https://www.mineralrightsforum.com/u/Alan_Herrington)
#### Post date: [June 18, 2023, 9:05pm UTC](https://www.mineralrightsforum.com/t/leon-county-area-pipeline-capacity-2023/71266/2 "2023-06-18T21:05:20Z")

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Pipeline capacity has definitely been increased in Robertson and Leon Counties. However, that creates the possibility of another problem: too much gas!

For April production, Aethon got a price of $1.57 per MCF for their Robertson County production, which was a 27% discount from the Henry Hub spot price of $2.15.

After marketing expenses and estimated royalties (20%), Aethon only netted $0.79 per MCF.

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### Author: ![Alan\_Herrington](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/a/b782af/32.png) [@Alan\_Herrington](https://www.mineralrightsforum.com/u/Alan_Herrington)
#### Post date: [June 18, 2023, 9:22pm UTC](https://www.mineralrightsforum.com/t/leon-county-area-pipeline-capacity-2023/71266/3 "2023-06-18T21:22:32Z")

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This situation also is a good illustration of why leases need to exclude marketing expenses from royalty calculations. In April 2023, Aethon obtained a gross price of $1.57 per MCF. Their marketing costs equaled $0.58 per MCF. If marketing costs weren’t excluded, royalties were reduced by 37%!

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### Author: ![Mineral\_Owner5](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/mineral_owner5/32/16262_2.png) [@Mineral\_Owner5](https://www.mineralrightsforum.com/u/Mineral_Owner5)
#### Post date: [June 19, 2023, 3:05pm UTC](https://www.mineralrightsforum.com/t/leon-county-area-pipeline-capacity-2023/71266/4 "2023-06-19T15:05:59Z")

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Marketing, transporting, treating, and so on. Point of sale. On and on. Thanks.

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### Author: ![system](https://www.mineralrightsforum.com/uploads/db5755/original/3X/6/c/6c7c56608c843272ad6e3662ce9562a5956f173e.png) [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [September 16, 2023, 3:28pm UTC](https://www.mineralrightsforum.com/t/leon-county-area-pipeline-capacity-2023/71266/5 "2023-09-16T15:28:49Z")

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