Free calculator
Is my gas royalty right?
1 · The gas
Only used to show the Henry Hub price for that month.
Your share of the volume, as the stub prints it.
The BTU factor on your stub, divided by 1,000. 1.036 is about the national average.
Henry Hub averaged $2.89 in Jul 2026.
2 · The plant
Was the gas processed?
Residue MMBtu divided by wellhead MMBtu. The rest left as liquids.
Gallons of ethane, propane and heavier liquids.
3 · What comes off
Dollars per MMBtu of your wellhead gas. Blank means none on your stub.
Texas: 7.5% on natural gas, 4.6% on condensate.
The tax is figured on
Your gas royalty
$200.37
Costs take 31% of the value.
- You keep 64%
- Gathering 13%
- Compression 5%
- Processing 9%
- Transport 4%
- Texas tax 5%
- Wellhead gas126.81 mcf × 1.036
- 131.38 MMBtu
- Residue gas sold110.36 MMBtu × $2.71
- $299.06
- Plant products28.4 gal × $0.52
- $14.77
- Value of your gas
- $313.83
- Gathering
- −$40.73
- Compression
- −$15.77
- Processing
- −$28.90
- Transport
- −$11.82
- Texas tax, 7.5%on $216.61
- −$16.25
- Your check
- $200.37
This is a sample stub
Where your gas goes
The gas path, station by station
What comes off is written at the station where it happens. Match each to a line on the stub.
Wellhead
131.38 MMBtu
126.81 mcf × 1.036 MMBtu per mcf
Gathering
−$40.73
Pipe from the well to the operator's system
Compression
−$15.77
Squeezed to pipeline pressure
Processing plant
−$28.90
Liquids come out, residue gas goes on
- Residue gas, 84.0% of the MMBtu110.36 MMBtu, $299.06
- Plant products, 28.4 gal$14.77
Pipeline to the sale
−$11.82
Moved to where it is sold
Texas tax
−$16.25
7.5% of the value after the costs
Your check
$200.37
What is left for you
Costs are 31% of the value of your gas
Compare with the statement
Does your stub land where this does?
If your check is lower than the result, one of the costs is bigger than you entered, or the volume is smaller. Upload the statement and we compare each line with the state record.
How a gas check is built
A gas stub pays for energy, not volume, and it pays for the gas and the liquids separately. Each cost comes off at the place in the pipeline where it is charged.
The formula
- Energy
- your mcf × MMBtu per mcf = wellhead MMBtu
- Residue gas
- wellhead MMBtu × residue share × price per MMBtu
- Plant products
- your gallons × price per gallon
- Costs
- wellhead MMBtu × (gathering + compression + processing + transport)
- Tax
- rate × (value − costs), or rate × value if the stub taxes before costs
- Your check
- residue gas + plant products − costs − tax
Costs are per MMBtu of your wellhead gas. If your stub charges processing on the residue MMBtu instead, use a rate scaled to match.
Reading the result
- Costs over about a third of the value. That is where the tool asks a question. Compare each rate with your stub and with the deductions guide.
- A price well under Henry Hub. Local hub prices differ, but ask which index the sale used and whether costs were taken before the price.
- A check that does not match. Check the heating value and the residue share first. They move the result more than any single cost.
Gas volumes come from the well, so a check can also be short because the volume is short. Upload a statement and we compare each month with what the state says the lease sold.
Questions owners ask
Common questions
Short answers. Sources are at the end of the page.
How is a natural gas royalty calculated?
Your mcf times the heating value gives MMBtu. The MMBtu that leave the plant as residue gas are multiplied by the price, and any plant products are added at their price per gallon. Gathering, compression, processing and transport come off, then production tax. The stub usually shows each step, and this calculator follows the same order.
What is the difference between mcf and MMBtu?
An mcf is a thousand cubic feet of gas, a volume. An MMBtu is a million British thermal units, an amount of energy. Gas is priced per MMBtu, so the volume is multiplied by the heating value. The Energy Information Administration reports the U.S. average at about 1,036 Btu per cubic foot, so an mcf is roughly 1.036 MMBtu. Richer gas has a higher factor, and your stub prints yours.
What are plant products and why are they a separate line?
Raw gas from an oil well often carries liquids such as ethane, propane and butane. A processing plant takes them out and sells them by the gallon, and the dry gas that is left, the residue gas, is sold by the MMBtu. Your stub pays each on its own line, so a gas check with plant products has more lines than one without.
Which costs can come off a gas royalty?
That depends on your lease. The usual lines are gathering, compression, processing and transportation, each charged per MMBtu. Compare each rate with the ones on your stub and ask the operator which of them your lease allows.
What tax comes out of a Texas gas royalty?
The Comptroller sets the gas production tax at 7.5% of the market value of the gas, and condensate at 4.6%. The Tax Code defines market value as the gas's value at the mouth of the well, and the Comptroller lets the operator subtract marketing costs such as compression for sales pressure, dehydration and pipeline transport to reach it. That is why the calculator lets you choose whether the tax is figured before or after the costs.
Why is my gas price lower than Henry Hub?
Henry Hub, in Louisiana, is a benchmark, and Texas gas is sold at local hubs and delivery points that can sit above or below it. The price on your stub may also be net of costs the buyer took before paying the operator. Pick the sale month above to see that month's Henry Hub average beside your price.
Free check
Rather have us check the statement?
Upload it. We compare every month with the Railroad Commission record and give you the questions to ask.