I receive royalties from FDL Operating in Garvin County among others. Trying to be a responsible mineral owner and keep informed I have to confess to confusion with a couple of terms used in reporting royalties by FDL. They report two types of products: Natural Gas Liquids and Residue Gas. As it happens these reports are roughly equivalent values for the month. As an aside they are referenced as Blanchard Interests, also a term I don’t see elsewhere, for each of the two wells. Anybody know why they might be using these particular terms?
A Blanchard interest refers to some OK case law deal for paying out gas royalties. I am not a landman and I don’t know anything about OK and in general I hate rules so will leave that to somebody else.
In terms of NGL and residue. The well makes gas. Gas goes to a gathering/processing plant. At the gathering plant the gas is cooled/compressed and the heavier elements (longer carbon chains: propane, butane, etc) fall out as liquids. Those get sold and you get NGL revenue. The remainder of the gas (mostly methane) is sold in gaseous form, that is called residue gas. The residue gas goes in a pipeline, that’s basically what you burn at your house or in gas-fired generators. That’s all pretty standard, maybe I don’t follow what you are asking.
3 Likes
This topic was automatically closed after 90 days. New replies are no longer allowed.