# Residue gas on statement
**URL:** https://www.mineralrightsforum.com/t/residue-gas-on-statement/72700
**Category:** Royalty Statements
**Created:** [October 18, 2023, 6:47pm UTC](https://www.mineralrightsforum.com/t/residue-gas-on-statement/72700 "2023-10-18T18:47:01Z")
**Posts on this page:** 4
**Page:** 1
### Author:  [@Debra\_Stearns](https://www.mineralrightsforum.com/u/Debra_Stearns)
#### Post date: [October 18, 2023, 6:47pm UTC](https://www.mineralrightsforum.com/t/residue-gas-on-statement/72700/1 "2023-10-18T18:47:02Z")
I own an interest in the Dallas 213 Unit 1H in Ward County operated by Permian Resources. I saw and read the thread “Hidden costs by Permian Resources.” My question pertains to how these costs are calculated, specifically on Residue Gas. Jan – May statements there were compression deductions and June – Sept statements there were purchaser gathering adjustments. In the chart below these deductions seem excessive ranging from 34.92% - 244.44% of my income. What accounts for this wide range of deduction cost to income? The largest percentage deduction was on my June statement with me having negative income. I had to pay for the sale of this residue gas. Who makes money on this type of transaction if I’m losing money on it?
Residue Gas
| | Royalty Inc | Compression | Purch gathering adj | % of royalty |
| --- | --- | --- | --- | --- |
| Jan | 225 | -78.56 | 0 | 34.92% |
| Feb | 247.03 | -80.37 | 0 | 32.53% |
| Mar | 224.14 | -81.96 | 0 | 36.57% |
| April | 117.49 | -72.67 | 0 | 61.85% |
| May | 87.11 | -79.95 | 0 | 91.78% |
| June | 31.14 | 0 | -76.12 | 244.44% |
| July | 70.23 | 0 | -78.71 | 112.07% |
| Aug | 104.58 | 0 | -74.99 | 71.71% |
| Sept | 138.78 | 0 | -77.18 | 55.61% |
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### Author:  [@TennisDaze](https://www.mineralrightsforum.com/u/TennisDaze)
#### Post date: [October 18, 2023, 11:55pm UTC](https://www.mineralrightsforum.com/t/residue-gas-on-statement/72700/2 "2023-10-18T23:55:17Z")
Permian reports the processed gas as its two components - (1) residue gas (volumes remaining and sold after removal of liquids) and (2) plant products (liquids removed from gas). Permian deducts the costs out of the gas, but these costs really apply to the combined value of the gas. To get the full picture, you have to add the Gas and Liquids sales together and then deduct the gathering costs and severance taxes. That should give you a net positive number for gas sales.
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### Author:  [@Debra\_Stearns](https://www.mineralrightsforum.com/u/Debra_Stearns)
#### Post date: [October 19, 2023, 11:49pm UTC](https://www.mineralrightsforum.com/t/residue-gas-on-statement/72700/3 "2023-10-19T23:49:55Z")
Thank you. I appreciate the explanation.
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### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [January 16, 2024, 6:47pm UTC](https://www.mineralrightsforum.com/t/residue-gas-on-statement/72700/4 "2024-01-16T18:47:34Z")
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