Hello All…we received a form to complete to provide for payment of gas royalties (W-9). We asked about the reason for this W-9 and were told that the company, “… has decided to take their gas in-kind on various properties in McKenzie County, ND…” We are told that the operator of the well will still get a check for the “burden share” of the operator and 1/2 of the gas for our lease. Can anyone provide more background on what this means and how royalties are impacted? We don’t know which wells or how many wells this impacts. But, we can ask the company who is taking the “gas in-kind” for more information. Thank you for any help provided!
Depending upon the area, that can be common. Other working owner interest owners may have contracts that they think are better, so they may want to sell the gas themselves. The royalties will be governed by the terms of your lease as far as net acres and royalty percentage. The missing unknown is the price for the gas. Ask the company that wants the W-9 about which wells. The Division Order department or revenue department is who you want.
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I see that you respond to many posts on here. Thank you for doing that! There is much I don’t know about royalty issues. Your help is appreciated!
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