I think my producer is underpaying royalties

Oil and Gas Leasing Help
1

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).

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Thanks in advance for helping if you can.

Melissa

2

You need to check your lease to see what deductions are allowed. Many leases allow for gathering deductions, some do not. There is no stock answer.

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3

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?