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Natural Gas Royalty Estimate

How much should you be paid for your gas?

This calculator can be used to produce an estimate of your expected monthy income from a natural gas well, assuming that you can at least guess at the average well yield in millions of cubic feet per day. Keep in mind that this is merely an estimate, and you could be paid a lot more money or a lot less. Also, this calculator estimates income for natural gas, but some wells have additional income from oil, natural gas liquids or other commodities that are not included in this royalty estimate.


Natural gas wells produce at a very high rate during their first few months of production. If you have a gas well and get an amazing payment for the first month of royalties, you can bet the whole check that the production of your well is going to drop rapidly (more information here). So use that first check to pay down your debts and open a certificate of deposit. And, don't quit your job until you know that you have enough money to retire.

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 well that you will be paid for. Enter 12.5 for a royalty rate of 12.5% or 1/8)
Enter 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 $4.29 per Mcf, enter 4.29) (You can view United States monthly average wellhead prices on the Department of Energy website. The wellhead price in your area can be higher than or lower than this national average.) More information about natural gas prices.
Enter the 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. New gas wells in the Marcellus, Haynesville, Barnett and Fayetteville Shales often yield between 1.0 and 2.0 million cubic feet per day. Higher and lower rates do occur. Older wells will have much lower yields.)
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? (A production unit is an area of land around a well that is entitled to receive a share of the well's production.) If you are the only property owner to receive royalties from this well enter 1.
All information provided by this calculator is estimated and provided for entertainment purposes only. The royalties that you are entitled to can be significantly different than these calculations depending upon lease agreements, expenses that you are expected to share, local law and other factors.


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