Royalty Price Provisions, Effective Burdens, and the Impact on Your Overall Well Economics-Oct. 16, 2024

Includes a Live Web Event on 10/16/2024 at 11:00 AM (CDT)

Previously Recorded from 2022 Annual Meeting

Marketing oil, gas, and NGL’s is more complicated and complex than most in the industry realize. The rapid increase in oil, gas, and NGL exports adds even more complexity. The ultimate value of the commodities depends on many factors including the regional location, the point of sale (whether at the wellhead or somewhere further downstream), the quality or condition of the commodity, and numerous other factors. Determining the price at a particular point of sale depends on the contracting and sales strategy of the producer. Royalty price provisions in lease agreements can likewise be confusing. In many cases, the Lessee remits payment to the Lessor based on what he actually receives, net to the wellhead. Certain lease agreements attempt to disallow certain deductions that may be required to make the oil, gas or NGL marketable. In many cases, the language in these leases does not make sense from a marketing perspective, leading to confusion on how royalty payments are made often resulting in legal challenges. Several court cases have attempted to resolve these disputes with cases having differing outcomes based on the specifics of the case. 

This talk attempts to assist negotiators in how to avoid introducing conflicting statements in lease agreements and arrive at the language that describes the situation they are attempting to receive. Another issue faced in the royalty provisions are the economic results of disallowed deductions. In many situations, organizational silos between land, engineering, management, and accounting result in no clear understanding of the actual economic results of disallowed deductions. A company that thinks it signed a lease with a 20% burden may experience an actual burden much higher as a result

1 CEU

Speaker: Suzie Boyd

Key:

Complete
Failed
Available
Locked
Royalty Price Provisions, Effective Burdens, and the Impact on Your Overall Well Economics
10/16/2024 at 11:00 AM (CDT)  |  60 minutes
10/16/2024 at 11:00 AM (CDT)  |  60 minutes
Post Webinar Survey
5 Questions
5 Questions Complete the survey to view certificate.
Royalty Provisions - Certificate
Live and Archive Viewing: 1.00 CEU credit and certificate available
Live and Archive Viewing: 1.00 CEU credit and certificate available Royalty Price Provisions, New Effective Burdens and the Impact on Your Overall Well Economics: Suzie Boyd

Suzy Boyd

President

Caballo Loco Midstream, LL

Suzie is the founder of Caballo Loco Midstream, a consulting firm that represents producers as well as midstream companies in marketing, planning and operations. Suzie’s experience includes time working on the producer side as an engineer when she worked for Superior and Mobil Oil. She later worked as business unit leader for various midstream organizations where she was responsible for gas gathering and processing, NGL and crude marketing, and business development. Her experience includes times spent with DCP, Enterprise Products, EnLink and Texon.

 

Suzie is a 2-time past President of the Natural Gas Society of the Permian Basin, a past Director of the Petrochemical Feedstock Association of America, Past Director of the Permian Basin Petroleum Association, Past President of the MagPegasus Federal Credit Union and active in the Gas Processors Association and New Mexico Oil and Gas Association. She holds a degree in Agricultural Engineering from Texas Tech University and earned her MBA from UTPB.