How do operators set the monthly price they pay mineral owners?
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No. Payment should be based upon lease terms (or pooling order election), acres owned in spacing unit, price for product received less appropriate deductions. I am assuming you are not talking about “shut in” royalties.
Operators have contracts with midstream transportation companies for take-away pricing for produced products. Some of them are stuck in long term contracts which can be “bad” or “good” depending upon the going prices. Mineral owners would usually prefer that those midstream companies be independent third party legitimate companies and not affiliated companies with under the table deals. Gas contracts tend to be more complicated than oil contracts since so much is involved with getting gas to market.
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