HomeMy WebLinkAbout20230894.tiffRECEIVED
MAR 1 3 2023
WELD COUNTY
COMMISSIONERS
March 7, 2023
RE: Natural Gas and Natural Gas Liquids Royalty Calculation
Holman Settlement Agreement / Ace -Davis Settlement Agreement
Dear Valued Owner:
FSS--Production, Revenue &
Royalty Accounting
Tax & Royalty Reporting --
Royalty Disbursements
Comptrollers, Chevron Services
Company
P. O. Box 4791
Houston, TX 77210-4791
Tell -866-212-1212
Fax 713-754-3065
LandAdmin@Chevron.com
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.
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(nlchevron.com or call (866) 212-1212.
Got- n S
Ct /03 /23
2023-0894
LE O 'OO
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