Royalty Verification
Phone: 607-757-0435
Fax: 607-757-0742
rdcongdon@stny.rr.com

Delta Engineers, Architects, & Land Surveyors, P.C. (Delta) in conjunction with Congdon &
Company, Inc., appreciates the opportunity to present our Royalty Verification Services. At
this time, we are building a client base in order to mobilize the service in the region.

Mission Statement

The objective of this service is to provide our Clients with a comprehensive Royalty
Verification Service encompassing all available and permissible on-site inspections and
back office auditing, thereby helping to ensure that our Clients receive the highest
legitimate and accurate royalty payments under their lease provisions and applicable laws.

Scope of Work (Field Services Selections)

  • Ensuring that the Lessee’s test equipment has been calibrated properly.
  • Ensuring that the Lessee records as found are correct.
  • Ensuring that each component (differential, static, temperature) is recording
    accurately.
  • Inspecting Lessee’s meter test and calibration procedures and addressing with
    Lessee any inconsistencies in procedures, equipment, or personnel not consistent
    with industry standards.
  • When possible, visually inspecting the orifice plate of the lessee for nicks,
    sharpness, warping (called dished), liquid buildup and verifying size of plate.
  • Gas sample procurement on site when possible.
  • Where a check meter is in place, we will provide an independent gas volume
    statement and report, along with any differential data as that which is shown by the
    gas company.
  • General field observations documenting any site changes, environmental concerns,
    or construction details as they develop.

Why invest in royalty management/well monitoring services?

  • Independent engineering evaluation by a nationally recognized company of your
    production and royalties without depending on the gas company.
  • Monitoring of well site activity and potential environmental concerns.
  • Our market survey indicates that these services are highly recommended by
    attorneys, accountants, and financial advisors.
  • A small inaccuracy in reported production can amount to thousands of dollars in
    royalties (see below).
  • User friendly and affordable reports are planed.
  • Support from a recognized Texas professional in the specific services, as needed.
  • Delta and Congdon have a long-term reputation for excellence in service.
  • No cost or obligation to inquire about our program.
  • Coordination with your legal and financial advisors if necessary.

Royalty payments are based on accurate gas well production metering

  • The program will provide for a comprehensive review of meter test procedures as
    an on-site well monitoring service to ensure accurate production reporting. Your
    royalty checks will depend upon accurate metering. Meters will wear out and
    become inaccurate.
  • Meter Reading on a periodic basis depending on production rates and economic
    factors.
  • Based on meter readings and production input from gas companies, we can make
    projections of future royalties for your estate financial planning, if needed.
  • We will provide related consultation with your personal financial advisors as needed.

% Errors due to orifice plate found: The Real Reason for the service

  • Slightly dulled plate edge (1/4 circumference): -0.5 to -1.5%
  • Dulled plate edge entire circumference: -12.7%
  • Backward plate: -20.0%
  • Dished (bent) toward direction of flow 1/8”: -2.8%
  • Dished toward direction of flow ¼”: -6.9%
  • 1/16” grease coating on both faces: -15.8%
  • 0.05” depth notch: -0.6%
  • 1” depth of liquid in bottom of meter tube: -11.3%
  • Leaky seal ring around plate: -0.4 to -6.1%
  • Wrong plate installed: variable error


Loss of $ Chart: Examples











*2010 average price of $4.33 per Mcf


Also

  • If any change in your water is observed, we can provide documentation and, if
    necessary, expert witness testimony and initiate more rigorous testing and analysis
    to isolate the source of contamination.
  • You should have an in-depth analysis of your water supply before drilling begins.
    Please feel free to contact us at your convenience to discuss any questions you
    may have, and to join our growing list of potential clients.
  • Please feel free to add your name and information to our client list by calling us and
    be on the forefront of receiving specific proposal and pricing documentation.