Understanding royalty statements



Started April 3, 2017 at 10:28 am by @Sonya Frederick in Marcellus Shale

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Sonya Frederick
04/03/17 10:28:50AM
@sonya-frederick

Hello,

  Just delving into the details of the statements that my family receives monthly.  Can anyone explain why a lessors Unit Decimal Interest would change from one month to another?

David Allen Lilly
04/03/17 12:00:07PM @david-allen-lilly:

I don't know what state you are in nor who your producer is.

I am in Ohio and I got Division Orders from Chesapeake Energy which showed me my decimal interest, this decimal interest is easy to verify.

You should call your producer and ask for your decimal interest if you don't have it in writing from them, and then ask why it is changing.


Perrylkeaton
04/03/17 12:36:51PM @pete:

in wv they issue pooling orders with your interest on it and it should not change on a monthly basis, it should only change when new orders are issued. know what yours is and compare that to your check stubs then call and ask what is going on and if they are shorting you or not


John Harrison
04/04/17 11:49:42AM @john-harrison:

In Northeast PA the game the gas companies play is that they claim they marketed less than their share of the gas for a month so they need to "adjust" your payment decimal so that you get your proper share.  This is a scam because it is not necessary and succeeds in giving you a number you can not verify.  In our case they came back after a year or so and "adjusted" everything back to the beginning with another bogus payment decimal so that ....you guessed it.....the royalty check was reduced considerably.  No way to verify except with an expensive audit.


Perrylkeaton
04/09/17 10:08:30AM @pete:

your decimal interest should not change unless the pooling changes, which would require an acreage change and new division orders to be issued


Sonya Frederick
04/09/17 02:13:55PM @sonya-frederick:
Thank you all. This is very confusing. A recent statement send, which was a cumulative statement even has different production numbers from the statement that was sent reporting that same time period about a year ago. How can the production numbers change?
Perrylkeaton
04/09/17 08:39:14PM @pete:
The production should not change but your share (decimal interest) of the total production would change if the pooling changes. or say from .002576 to .001985
jnm
04/10/17 05:19:06PM @jnm:

My decimal interest is different for oil than it is for gas and NGL. No logical reason why it would be this way but higher on the gas and NGL so I've never questioned it.


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