We inherited these wells and this is our latest statement. We’re getting about $28 per quarter. Can someone help us make sense of this?
Hi so we are dealing with the same issue. The only sense I can make of it is operators/leasee on wells are taking out deductions ten fold and not going by original leases. Hoping no one is paying attention and if you question it they just throw something at you wanting you to just be fine with it. Then someone comes and offers to buy them. Hoping you’ll just throw your hands up and sell because they are taken so much.
So I see no good sense in what they are doing and honestly the way I see it is people should pay attention and question them about it. Unless you has a royalty owners/ lessor of mineral rights like getting paid so little and then paying taxes along with all the time and effort you personally put in.
Just my thoughts
Your decimal interest amount is made up of several components-your net acreage, the spacing unit size, the royalty and the amount of perforations. Given that you are in WV, the post production charges are normal and fairly large unless you lease does not allow them. Many folks are stuck with old leases that are at 1/8th. In WV, many owners have very small net acres due to fractionation over the generations of splitting up the acreage amount many heirs. Do you know your net acreage and royalty? You can ask the Division Order Analyst for the equation that they use for your check.
I was at a NARO conference this week and one of the speakers commented that in Appalachia, it is common to have 50% post production charges, so that takes a gas price of $3.00 down to an effective $1.50 for mineral owners (depending upon the area).