Monthly Royalty Payments - Oil Company Barrel Pricing and Wellhead Marketing Deductions

Rice B · 2016-08-13T19:14:03Z

#1 - Regarding oil barrel pricing by the oil company, we have several producing wells in Glasscock County, Texas that are leased and operated by Apache Corporation. Our lease calls for the payment of oil royalties to the Lessor based upon the "average posted market price of such one-fifth (1/5) part of such oil at the wells as of the day it is run to the pipeline or storage tanks." My first question - why is Apache Corporation's monthly oil barrel pricing consistently and significantly much lower (-6% to -20%) than what is readily published for West Texas Intermediate (WTI) oil? #2 - Regarding wellhead marketing deductions for gas, casinghead gas, and other by-products by the oil company, our lease calls for a prorata share equal to our royalty percentage of all marketing costs. The percentage deduction from monthly gross revenue for the oil is minimal and nominal, but the percentage deduction for everything except oil is as much as -50%. These deductions seem exorbitant. Does anyone else experience this? I am just wanting some confirmation from others that I am being paid fairly and per my lease by Apache Corporation. Thanks. Eric B.

Texas Mineral Rights Glasscock County, TX