Why did Plant Products suddenly start appearing on the royalty statement? They also started going back a few years on Oil, Gas and Plant products production. Did the operator receive a audit or something?
Gas is run through a processing plant to separate out components which are more valuable to sell separately, such as ethane, propane, isopropane, etc. these are called plant products or liquids. More components make gas ‘wetter’. Some gas is very dry with little to remove. And the value of each component varies over time, just like gas and oil prices. Some operators report sales of dry or residue gas (after processing) separately from the liquids and other operators combine all sales as gas. Your operator might be changing its reporting method. It is also possible that the components previously had so little value that they were not separated before the gas was sold. If you identify the operator and well, including state and county, you might get more specific information from another owner.
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Thank You, good info. Birch Operations, Inc. Howard County, Texas Harrell 33 well Some recent statements have production(Oil, Gas and Plant Production) all the way back to March 2019. This is great but why now?
Never mind, I just watched a webinar on NARO that made since but just confused me even more, LOL
This may be catch-up of underreported sales or it could be adjustments, due to the operator’s internal reconciliations. Depending on whether i]there are only positive products revenues or whether there are both positive and negative entries for both gas and products. This well is RRC 08-42428. The gas and products sales are being reported to Texas Comptroller CONG only as single number as RS (residue gas), with RRC gas volume. You can compare the combined sales revenues for gas and products on your checks to the single sales revenue on CONG for each production month. Best to do this on a spreadsheet where you can enter the original gas sales (from earlier checks) and the revised gas and products sales (from later checks) to get to the total gross sales revenues.
Great information! I have never been into to CONG before. Looks like I will be building a spreadsheet. Another subject - There is a operator on there that did not pay for their 2 years operating the well. Do you or anybody else know how to prepare a certified letter to send to them about this issue?
Similar to you but no explanation, our operator Cimarex in late 2019 changed labels, NGLs became Plant Products, Oil became Condensate.
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