It is spelled out in the contract, however, I would have a difficult time showing payment. I realize it probably varies from company to company in their process. Can anyone shed some light on this subject?
Dear Mr. Tucker,
If the royalty code is not NGL, it is probably coded under condensate.
In Texas wells are classified by the Texas RRC as either a gas well or an oil well, depending on the gas to oil ratio of the well. This can change over time, as a well can be produced as a gas well for years and the RRC can have the operator retest the well. Depending on the results of the test, the well can be reclassified as an oil well. Liquids produced from an oil well are considered oil and the associated gas is casing head gas. Liquids produced from a gas well are condensate. Liquids produced from a well after the gas has been treated are called NGL or natural gas liquids.
Thank you Mr. Cotten, I appreciate the information.
Buddy Cotten said:
Dear Mr. Tucker,
If the royalty code is not NGL, it is probably coded under condensate.
Buddy
Thank you Mr. McConnell. In the Woodford shale, southeastern Oklahoma, I am not aware of any wells turning to oil, I think they are strictly gas. Western Oklahoma is a different story.
James H. McConnell, CPL said:
In Texas wells are classified by the Texas RRC as either a gas well or an oil well, depending on the gas to oil ratio of the well. This can change over time, as a well can be produced as a gas well for years and the RRC can have the operator retest the well. Depending on the results of the test, the well can be reclassified as an oil well. Liquids produced from an oil well are considered oil and the associated gas is casing head gas. Liquids produced from a gas well are condensate. Liquids produced from a well after the gas has been treated are called NGL or natural gas liquids.
Hi !
When is the gas treated, before it leaves the pad or after it arrives at the cracking plant ? When I get paid for
my natural gas, are they paying me for wet gas then cracking and selling both gas and NGL's. If so, the final values of the various products are substantially higher than spot gas prices.
Jan
James H. McConnell, CPL said:
In Texas wells are classified by the Texas RRC as either a gas well or an oil well, depending on the gas to oil ratio of the well. This can change over time, as a well can be produced as a gas well for years and the RRC can have the operator retest the well. Depending on the results of the test, the well can be reclassified as an oil well. Liquids produced from an oil well are considered oil and the associated gas is casing head gas. Liquids produced from a gas well are condensate. Liquids produced from a well after the gas has been treated are called NGL or natural gas liquids.
Hi Jan,
No kidding. One of my clients wells is producing 24gal of NGL per mcf. Talk about rich gas! The almost doubles the Henry Hub spot price.
Jan Lake said:Hi !
When is the gas treated, before it leaves the pad or after it arrives at the cracking plant ? When I get paid for
my natural gas, are they paying me for wet gas then cracking and selling both gas and NGL's. If so, the final values of the various products are substantially higher than spot gas prices.
Jan
James H. McConnell, CPL said:In Texas wells are classified by the Texas RRC as either a gas well or an oil well, depending on the gas to oil ratio of the well. This can change over time, as a well can be produced as a gas well for years and the RRC can have the operator retest the well. Depending on the results of the test, the well can be reclassified as an oil well. Liquids produced from an oil well are considered oil and the associated gas is casing head gas. Liquids produced from a gas well are condensate. Liquids produced from a well after the gas has been treated are called NGL or natural gas liquids.