I have a question regarding my latest statement from Valence Operating. My statement shows taxes on the gross amount for a given month of production is between $.99 and $2.80. But beginning in July 2018 and up until January of 2019, taxes for the natural gas jumps drastically to between $400.00 and $800.00 dollars. Can anyone tell me why this is? With my thanks!
Are you talking about severance tax or costs such as gathering, transportation, marketing, etc? Severance tax rates for all states remains largely fixed. However, a lot of operators are charging for expenses. Sometimes the operator netted the expenses out of the gross sales and so the charges were hidden. The ability to charge the expenses varies by state law and your lease terms. Post the well name and state / county to get more help.