Royalty Rate

Royalty Rate

Enter your Royalty Rate as a decimal number between 0 and 100. (The Royalty Rate should be in your Lease Agreement. It is the share of gas produced from the Gas Well that you will be paid for.) Example: Enter 18 for 18% or 12.50 for 12.50%.

Wellhead Price

Enter the Wellhead Price of natural gas in dollars per thousand cubic feet of MCF. You can view the Department of Energy USA website for the Monthly Average Wellhead Prices or the Natural Gas Futures Prices. Note: Your Wellhead Price in your area can be higher or lower then the national average. Example: If the price is $4.25 per MCF enter 4.25.

Average Production Rate

Enter the Average Production Rate of the Gas Well in millions of cubic feet per day or MMCF. If you do not have production data for your Gas Well any number that you enter will be a guess. A Gas Well in the Marcellus Shale Often yield between 0.2 and 10.0 million cubic feet per day. Example: In the first and second year of production the yield could be 2.0 – 4.0 million cubic feet per day. In the third and fourth year of production the yield could be 1.0 - 2.0 million cubic feet per day.

Acres Owned Within a Production Unit

How many Acres do you own within the Production Unit? (A Production Unit is an area of land around a Gas Well that is entitled to receive a share of the Gas Well's production. This can be determined by private agreements or by mineral rights law.) If you are the only property owner to receive royalties from this well enter 1 or if you own 50 Acres within the Production Unit enter 50.

Acres within a Production Unit

How many Acres are in your Production Unit? (A production unit is an area of land around a Gas Well that is entitled to receive a share of the Gas Well's production.) If you are the only property owner to receive royalties from this Gas Well enter 1. Example: A Production Unit could consist of 600 acres, if so enter 600.

Gas Wells within a Production Unit

Gas Wells within a Production Unit

How may Gas Wells are in your Production Unit? Generally, a Production Unit has 4-8 Gas Wells. Example: If there are 4 Gas Wells within the Production Unit enter 4.

 

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All information provided by this calculator is estimated and provided for entertainment purposes only and is not intended to provide financial, legal or tax advice to the user. The royalties that you are entitled to can be significantly different than these calculations depending upon lease agreements, local law and other factors. The energy sector is subject to certain risks, including price and supply fluctuations caused by international politics, energy conservation, taxes, price controls and other regulatory policies of various governments.