Cost to Landowner for Transport of Natural Gas

Started September 29, 2018 at 03:07 pm by @JMS in General Shale

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09/29/18 03:07:15PM

We were just offered $2000 an acre and 14% royalties, less the cost of transportation. 

Landlady was unable to give any figures for cost of transportation.  This doesn't make sense to me.

Seems to me there should be some kind of cap at least on transportation costs...or a % of the royalties, which could be a big deduction.

Any thoughts as to whether this is a legitimate offer? 

Terry L. Antee
10/01/18 02:49:37PM @terry-l-antee:

14% royalty is really not even close. 25% is more in line. I also would have no transportation or marketing cost clause.   

10/02/18 03:06:29PM @jms:
Previous lease was 3250; 18%; no deductions...that lease was negotiated for a large group of landowners in 2012, but there is no competition now; and no land group.
10/02/18 03:07:11PM @jms:
Heard they are not negotiating in deductions.




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