Why are my royalty check the same when cost per barrel is up so high. Who is getting the money from the gas pump?
Your wells are naturally declining in volume over time. So the payments are based upon your royalty, the volume and the price of oil and gas. So expect the royalties to go down over time.
The money at the gas pump goes to the filing station owner, BUT a huge portion of that goes to pay their expenses, the refining costs, the gasoline tax, the state and federal taxes, etc. Their margins are extremely small.
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