Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: Enlightened1

They are not fees. It is called royalty. The portion of the well that the government gets. In most places, quarter royalty is common.


2 posted on 11/27/2021 6:25:30 PM PST by crusty old prospector
[ Post Reply | Private Reply | To 1 | View Replies ]


To: crusty old prospector

High energy prices are a Biden administration policy.


6 posted on 11/27/2021 7:09:11 PM PST by Romulus
[ Post Reply | Private Reply | To 2 | View Replies ]

To: crusty old prospector
The portion of the well that the government gets.

It's the portion that we, the taxpayers who own the land, get.

10 posted on 11/27/2021 7:49:56 PM PST by semimojo
[ Post Reply | Private Reply | To 2 | View Replies ]

To: crusty old prospector

Show your work. In my experience, a 1/4 royalty is unheard of unless the royalty is burdened with the cost of chillers, separators, transport, and other enhanced recovery costs that traditionally were considered as LOE. All of that notwithstanding, the idea that this will raise revenue is illusory. Bidders will consider the increased royalty costs due to the higher royalty rate when preparing their bids, and will reduce their lease bids accordingly.


13 posted on 11/27/2021 10:42:36 PM PST by j.frank.dobie
[ Post Reply | Private Reply | To 2 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson