Here’s a record for us…Trinity Op took 72% of our April gas production revenue for transportation costs!
Check your lease for allowable deductions. Also look at the price you were quoted for the sale of each unit of gas/oil that was sold. It may be way off as mine was for March.
It isn’t going to help that OneOK seems bent on taking over all the natural gas transportation in the state. Monopoly = price gouging.
1 Like
Trinity also took all of my OR payment last month on wells in OK for prior transportation cost they said they forgot to charge for.
Keep in mind that oil companies negotiate transportation contracts with fixed rate per mcf. So if the price of gas is high, then the percentage will be lower than if the price of gas is low. For example, suppose gas transportation is $0.50 per mcf. If gas price is $3.00, then the percentage is 16.67%. If the price of gas is $1.00, then the percentage is 50%. Gas prices are low at this time. This does not address the issue of what charges are or are not allowable under your lease.
1 Like
This topic was automatically closed after 90 days. New replies are no longer allowed.