I have read a couple articles recently about the use of flare gas to create electricity either to power the fracking units (instead of diesel) or to power high end computer banks that are generating bit coin. I think its great that they are searching for ways to reduce flared gas but if someone is saving or making money off of that gas then what happens to the royalty owner interest? I recognize that most old leases allow use of gas on-site, as I thought it was for pumpjack operating or similar. If the new potential uses fall under the on-site use what keeps them from not selling gas at all and ONLY using it on-site for power generation or whatever?
I first heard about that issue at the NARO national issue in Ohio a few years ago. Some operators were using gas to fire generators for their drilling and fracking fleets and selling the electricity back to the grid-without paying the royalty owners.
During OTC in Houston this year, I hear a radio program from a major service company representative discussing something similar.
I strike the clause from all of my leases. They should not be able to use my oil, gas or water without paying me.