My mineral check went down to $100.00 a month. I received a letter from West Virginia Tax division stating there was a clerical error in my taxes. I called them to find out why. I told them about my small checks. They said they didn’t know why the checks were so small. The oil and gas companies were pumping more now than they ever have. They are researching and will get back with me. What are y’all’s opinions on this? Thanks.
All wells decline in volume over the life of the well as the pressure drops off and the reservoir is drained. Think of your bathtub draining or the fizz in a soda escaping. The price of gas has dropped significantly in the last year compared to a year or so ago. This chart shows the generic Henry Hub gas price over the last few years. Note that 2022 was exceptional. High demand as the US was shipping LNG to Europe due to the invasion of Ukraine. We are in a more normal, but a bit lower than usual pricing cycle now. Prices are expected to pick up in late 2024-26 as more LNG terminals go online and ship out more LNG to world wide customers.
The volume of your well and the product price plus your royalty amount determine your checks.
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