Hi. My husband and I signed a lease in 2017. The royalty rate is 16%. We didn’t know the land was producing (EQT) until 2024, when we got postcards from companies that wanted to buy our “producing rights.”
After some back-and-forth with EQT, we received a royalty check that dated back, on 3 wells, to start of production. This check was less than $2,000. The decimal on our statements is 0.00005577.
This is an example on just one well for June/July 2024. The well’s total BOE is 1.1 million and it usually runs between 55 and 60 mcf. My biggest concern is gathering fee and gathering fee WI Only. How do I verify the gathering fee, and why is a working interest item being deducted from gross? (We have no working interest).
The working interest gathering portion shows your net deduction is $0. So they show you the deduction math but they didn’t deduct that specific item from your check.
The other line for gathering, well that’s a different story. Definitely want to review the terms of your lease. Also, why did they not pay you for so many years? Did they pay you interest?
I have not received any real answer as to why they didn’t pay. I DO know that a pool was created in 2020… and we weren’t notified of it. Therefore, we had no say in it.
The lease says we are liable only for the royalty interest share of post-production costs – not all of them. I think that Working Interest gathering fee is coming out of our royalties. **Does PA have a standardized rate for gathering fees, or does each producer get to set its own?
Here’s the last page of the 5-year revenue statement (June 2024 check) with the totals on that same check. We aren’t even, after post-production, getting the minimum 12.5% mandated by PA law. I don’t think we received any back interest, either.
EQT did an NRI calculation for me.
Total unit acres: 607.5
Contributing acres: 24.2
Our contributing percentage of total: 3.98353909%
Title ownership: 0.87500%
Royalty: 16.00% (lease does say after post-production costs are deducted)
Is it normal for a worksheet-based revenue statement to have negative totals/amounts in it? That’s what I got when I downloaded the Excel version of this image.
