Natural Gas Liquids

Oklahoma Mineral Rights
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Are natural gas liquids always produced with oil wells producing gas as well?

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Natural gas liquids are produced as by-products of gas. They are the heavier gases such as butane, propane, ethane. They are not necessarily associated with an oil well as they belong to the gas category.

Natural gas liquids ( NGL ) are components of natural gas that are separated from the gas state in the form of liquids . This separation occurs in a field facility or a gas processing plant through absorption, condensation or other methods. Natural gas liquids are classified based on their vapor pressure: Low = condensate .May 13, 2019

Natural Gas Liquids – NGL Definition - Investopedia

](Natural Gas Liquids – NGL Definition)

Here is another link: NGL or LPG or LNG – Definitions and Common Uses

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I have interest in sec 12 03n 04w. Garvin County OK…6 Bud wells and 3 Dilly wells. I’ve been following OTC gross production and OCC 300R filings. Gas and oil are reported but I’m not seeing NGL reported. I just wondered if these wells just aren’t producing any. All of my other wells produce NGL with gas and oil.

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Most wells these days produce both oil and gas, and most wells with gas have NGLs (at some point down the pipeline, at least). HOWEVER both reports you mention only have two products reported (oil and gas) prior to NGLs being processed out of the gas. “Gross production” is measured at the wellhead, and anything that’s liquid at the wellhead is recorded as oil or condensate, not NGL (since NGLs are extracted under special conditions like at a plant or facility).

But you mention other wells that have NGLs, so I’m guessing you must being seeing payments or purchaser statements. If you think you SHOULD be seeing NGLs and you’re not, there could be other things going on:

  1. Some wells mach such little gas that it can be burned (either as fuel or flared) or such little oil that it evaporates before making it on a truck (or even out of the reservoir). Unless the gas is pure methane (and I’ve never seen one that was), the gas has the ability to have associated NGLs. But that doesn’t mean they’re sold…

  2. More often, the operator and midstream company have agreed (in a contract) that the gas is sold prior to extracting NGLs. It’s also possible the plant has decided the NGLs are worth more in their gas form than in their liquid form (making the gas have a higher heating value, rather than selling ethane as a liquid product, for example).

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As Tracy said often times the gas is sold before ngl extraction. On my check stubs from Continental Resources a btu value is listed for the gas sold. A value of around 1000 is considered “dry” gas, higher btu values are referred to as “wet” gas. When demand for ngl components such as butane, propane, ethane etc are high we received considerably higher prices for our gas in the 1300-1400 btu range. Unfortunately the current prices for both wet and dry gas are not resulting in the kind of money were making 7-8 years ago.

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I was pleasantly surprised to receive payments for several wells dating back to 2015 for flared gas on last month’s royalty check. Granted, I have been demanding these royalties for years, but the operator disputed them. Is anyone else getting surprise flared gas payments?

Thanks to NARO I have learned not to back down when my royalties are underpaid.

Now I will calculate interest due on the late payments.

Stay Safe!

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Good luck getting the interest! I’ve tried, as my cousin has with no luck!

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I’ve had luck before, but usually when they need a signature from me for some reason.

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