Looking for guidance on understanding my revenue statement. For some of my parcels, there are multiple entries for residual gas for the same day. All but one of the entries shows zero volume, but shows a transportation or treatment charge. The final entry for the day shows a production volume and revenue, but the revenue is exceeded by the posted transportation and treatment charges. In other words, I am being charged for residual gas instead of paid for it. Is this normal?
What state are you in? Many states do allow post production charges depending upon the wording of your lease. It is possible to have charges exceed the value of the gas being sold. Gas prices have been very low earlier this year.
Sorry, should have stated this is in Midland County, Texas and my holdings are a NPRI which is stipulated as “free of cost” and “free royalty”.
I am particularly concerned when charged fees when there is no production listed.
That phrase doesn’t usually mean “free” in Texas. Because of the “at the wellhead” phrase. Best thing is to call your operator’s owner line and have them explain the situation to you.
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