I just received my monthly "Revenue Summary Statement" on a gas well situated in Liberty County, Texas. This summary shows the "gas" net volume and value as it has shown on all previous statements. However, this month there is also "oil" net volume and value which has not been on previous statements. Can someone tell me what this means? Thank you.
Deanna,
That could possibly be extra royalty from condensate(a thin liquid) derived from natural gas and they are calling it oil. Sounds good to me. I receive the same thing from a gas well in Wise County Texas. Congratulations on the exra dollars.
Clint Liles
Check your lease language to see what it provides for oil, condensates, and / or other NGLs (natural gas liquids) or other gaseous substances. Sometimes the royalty rates are different, and sometimes they are not leased at all.
I can think of one operator in Kansas who leased ONLY gas, but through the collection of salt water from gas production they were able to strain out a few barrels a month of oil, which they had no right to keep and sell (because oil was not leased). It's good they are reporting it to you, the operator in Kansas didn't report for several years until they got caught!