How to read a royalty check stub?

Royalty Statements
1

I don’t understand why there are negative amounts in the volume column on a royalty check stub?
Example: on 5/07 price column shows 6.655 volume column shows -26129.00 Tax column shows -1928.80 Net value shows -171978.02
How can the volume be less than zero?
Sherry

2

Can you upload a copy of the check stub without the personal information?

3

I don’t have a scanner available at the moment. Is there some other information that would be helpful?

4

Jules, Here is the basic layout of the stub: LEASE OWNER prod date price volume tax deduct net value pay decimal volume gross value tax deduct net btu

Sherry Steckler said:

I don’t have a scanner available at the moment. Is there some other information that would be helpful?

5

Sherry, THere’s an article on this topic in the main navigation bar at the top of the Mineral Rights Forum homepage. It’s titled Royalty Statement. You can’t miss it.

6

I have read the article and did find it helpful, however, it doesn’t give an explaination for negative mcf volumes reported.

Kenny DuBose said:

Sherry,
THere’s an article on this topic in the main navigation bar at the top of the Mineral Rights Forum homepage. It’s titled Royalty Statement. You can’t miss it.

7

Dear Ms. Steckler,

In my experience, what you are looking at is very likely an adjustment over a previous production month. A penny off on the price per mcf, for example, could have a huge effect to the producer. On natural gas, production is measured in mcf, but paid on its heating content (btu).

I personally do not know why they do not get it right the first time, but that is likely your situation. See if you have an offsetting entry in the SAME production month.



Sherry Steckler said:
I have read the article and did find it helpful, however, it doesn't give an explaination for negative mcf volumes reported.

Kenny DuBose said:
Sherry,
THere's an article on this topic in the main navigation bar at the top of the Mineral Rights Forum homepage. It's titled Royalty Statement. You can't miss it.