Royalties and Expect lossSo i'm working up a new chart and i was wondering if anyone here could help me with some questions.
Loss= Helium on well 4 is 1.1370%. During extraction and processing i would expect there to be some loss involved. Anyone have a good generalized figure i can apply to this for forecasting purposes?
Royalties= Arizona BLM says the following below in italic. I have two questions. Wasn't there a private land owner royalty in addition? I believe i read 16% total here prior but i'm not sure.
Second quetion, Are royalties taken from the cumulative recoverable/valuable gas or is it 16% for each individual gas?
Flow Rates = If a well has a flow rate of 1251 MCFGPD would you expect them to process it at that speed? a lesser speed? Is there a % value i can generically apply here?
- If a discovery (oil, natural gas, helium, CO2) is made, the lessee will pay a royalty to the Land Department of 12.5% of the gross value of the production.