Natural Gas Royalty Estimate

Your royalty rate entered 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 well that you will be paid for. Enter 12.5 for a rate of 12.5%)

The wellhead price of natural gas in dollars per thousand cubic feet or Mcf. Enter the amount as a decimal number. (example: If the price is $8.29 per Mcf, enter 8.29) (For a general idea look-up the national rate.)

Average production rate of the well in millions of cubic feet per day or MMcf. (If you do not have production data for your well any number that you enter will be a guess. Gas wells in the Marcellus, Haynesville, Barnett and Fayetteville shale often yield between 0.5 and 2.0 million cubic feet per day. Higher and lower rates do occur.)

How many acres do you own within the production unit? (A production unit is an area of land around a well that is entitled to receive a share of the 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.

How many acres are in your production unit? (Frequently 640 acres but could be more or less depending upon private agreements or mineral rights law.) If you are the only property owner to receive royalties from this well enter 1.