HomeMy WebLinkAbout20240698.tiffChevron
WELD COUNTY CO
PO BOX 758
GREELEY, CO 80632
March 8, 2024
RECEIVED
MAR 18 2024
WELD COUNTY
COMMISSIONERS
FSS--Production, Revenue &
Royalty Accounting
Tax & Royalty Reporting --
Royalty Disbursements
Comptrollers, Chevron Services
Company
P. O. Box 4791
Houston, TX 77210-4791
Tel 1-866-212-1212
Fax 713-754-3065
LandAdmin@Chevron.com
RE: Natural Gas and Natural Gas Liquids Royalty Calculation
Holman Settlement Agreement / Ace -Davis Settlement Agreement
Dear Valued Owner:
This letter concerns royalty payments made under the Holman Settlement Agreement or
the Ace -Davis Settlement Agreement. You are receiving this letter because you have been
identified as a member of the Settlement Classes under the Holman Settlement Agreement or
Ace -Davis Settlement Agreement (or a successor to a class member). If you are not a class
member (or successor), you may disregard this letter. If you have any questions or concerns on
this topic, please see the contact information included at the end of this letter.
Pursuant to the Holman Settlement Agreement and the Ace -Davis Settlement Agreement,
this letter is being sent to all members of the Settlement Classes and the successors to those class
members in order to explain royalty calculation under the settlement agreements for the
preceding year. As you are likely aware, Chevron acquired Noble Energy, Inc. ("Noble"). As a
result of that acquisition and the integration process, in late 2021 royalty owners began receiving
a new supplemental check detail. This letter discusses that supplemental check detail.
Generally, under both settlement agreements, Noble (i) pays royalties on 100% of the
proceeds received by Noble on the sale of gas and natural gas liquids ("NGLs"), (ii) pays
royalties on 50% of the value of gas for which Noble does not receive proceeds because of
percentage of proceeds and/or percentage of products agreements, lost and/or unaccounted for
volumes and/or fuel volumes, and (iii) deducts 50% of the costs paid by Noble to providers of
post -wellhead services.
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Noble makes gas royalty payments approximately 60 days after the end of the production
month.
Codes Used on Supplemental Check Detail
In calculating royalty under the settlement agreements, Noble deducts only 50% of
the costs paid to providers of post -wellhead services. The supplemental check stub identifies
the types of post -wellhead costs deducted: "Other" for a fractionation fee, "Process." for
electricity, "Transp." for gas gathering and transportation, and "Dehy" for treating. Noble also
pays royalties on 50% of the value of volumes used as fuel, and 50% of the volume of fuel is
included in the volume on which royalty is paid. The value of fuel on which royalty is paid is
identified on the supplemental check detail by "Fuel."
If you have questions you may email at landadmin@chevron.com or call (866) 212-1212.
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