I have mineral rights in Tyler county WV. 3 wells are pumping. These wells started pumping August 2021, 2022 started going down. Now check is hardly nothing. There is 4 people that get checks from these 3 wells. I have did some digging in the tax part and there is another man that gets more than all of the 4 mineral rights owners. His taxes to pay on was $35,000 for 2022. The taxes say it’s on one of our wells. My question is why does he get more money than us. Our money doesn’t even come close to that amount adding all of ours together. They started these wells in August 2021, so that amount would not be his pad fee to be on his land. Since these taxes are for 2022. Our wells are in the Marcellus shale. Thanks need advice.
It is highly likely that each of the owners has a different amount of net acres. The royalties are calculated by the net acres, royalty amount from the lease and the spacing. Gas prices were very high in 2023 due to the Ukraine war and LNG shipments to Europe. They have dropped quite a bit this year back to the normal range. You can contact the Division Order department (by certified letter return receipt) of the operator and ask them for the equation they use to calculate your royalties, the net acres that they are carrying for you. You may also ask nicely for a copy of the paragraphs from the title opinion that support those net acres. Tell them you need them for your records. Give them your owner number and the name of the three wells. It is natural for the wells to decline in volume over time.
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