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I read about natural gas selling around $5.00… So why does my royalty check show less?
The natural gas price you read in the news is the price paid at what is called “Henry Hub” which is the central gathering point in South Louisiana that establishes the “Base Price” for natural gas sold in the United States. All natural gas is priced at this “Index Price” LESS transportation (pipeline costs) and… Read More
Why is the oil price on your Royalty checkstub less than published rates?
Like most commodities, crude oil is produced in widely differing “qualities.” For example, much of the crude oil produced in the field contains sulfur – sometimes in very high quantities. To refine this high-sulfur crude oil obviously costs more than for what is termed “sweet crude oil” and this incremental refining cost is deducted from… Read More
Royalty Owner Qualification for State and Federal Benefits – Part 2
WHAT TO DO WHEN AN APPRAISAL IS REQUIRED? As compared to an outright sale, this alternative is far more problematic. As I have already discussed, the oil and gas purchasing companies are usually prohibited by company policy from giving out a determination of value of an interest. In most instances, it would merely be an… Read More
Royalty Owner Qualification for State and Federal Benefits Part 1
At least several times a month, we receive a call from a desperate and exasperated son or daughter trying to figure what to do about qualification of their parent for some type of State or Federal service. Whether they seek Medicaid or some other type Social Security benefit, the problems presented are the same. Divestiture… Read More
Passing The Legacy Along – Interests in Oil, Gas, & Royalties
For many people who have inherited producing oil and gas interests and royalties, there is a great sense of continuity and pride of ownership. They are perhaps the third generation to maintain and manage family oil, gas and mineral interests first acquired by a Grandfather or relative, who accumulated various royalty and overriding royalty interests… Read More
