So, you wanna lease your land for drilling?
Expect to live off those "royalties"?
Read the link below, and Think Again.
http://www.propublica.org/article/unfair-share-how-oil-and-gas-driller s-avoid-paying-royalties
Really ... dealing with these guys is like dealing
with an investment broker. In PA, the laws are worse.
You lose, they win.
Go ahead ... flame away, moles!
There is an absolutely massive error in the first 3 paragraphs of that article, which make me think that the author has no idea what he is talking about.
After 6 months of production, there is absolutely no way an oil or gas well will be producing the same amount of product as the day it was turned on. Here is a great website that explains how wells work:
http://geology.com/royalty/production-decline.shtml
Look at the decline curve at the top. Dammit, I just realized it has a logarithmic scale and you probably haven't had a single math class since Algebra 1 in high school, so you don't know what the *beep* you are reading, but I will try to explain it anyway. That is a best case scenario well, and in 3 months production is down 60%. In 6 months it is down almost 80%. The man in the article is saying his royalties went down 90% in 5 months, which is completely possible since it sounds like the well came on a lot higher than normal, so the drop will be even steeper.
I wish the author would have posted just a little bit of actual production data with the article instead of saying "lol the well is still producing just as much gas 6 months later as it was day 1". I guess it worked, because idiots like you missed that lie and ate up everything presented in the article.
Mole Alert!!!