The Marcellus Shale Royalty Calculator helps landowners estimate the royalty payments they can expect from natural gas production on their property. This calculator is useful for landowners, investors, and financial analysts to understand potential earnings from gas leases.

## Inputs, Formulas, and Calculations

## Inputs:

**Acres Leased (acres)**: The total number of acres leased.**Production Rate (MCF/acre)**: The production rate in thousand cubic feet per acre (MCF stands for thousand cubic feet).**Gas Price ($/MCF)**: The price of natural gas per thousand cubic feet.**Royalty Percentage (%)**: The percentage of the revenue that the landowner receives as royalty.

## Formulas and Calculations:

## Royalty Calculation:

The formula to calculate the royalty payment is:

[ \text{Royalty Payment} = \text{Acres Leased} \times \text{Production Rate} \times \text{Gas Price} \times \frac{\text{Royalty Percentage}}{100} ]

## Example Calculation:

**Inputs**:

- Acres Leased (( A )): 100 acres
- Production Rate (( P )): 500 MCF/acre
- Gas Price (( G )): $3.00/MCF
- Royalty Percentage (( R )): 15%

## Step-by-Step Calculation:

**Calculate Royalty Payment**:

- Using the formula:

[\text{Royalty Payment} = 100 \times 500 \times 3.00 \times \frac{15}{100} = 100 \times 500 \times 3.00 \times 0.15 = 22,500 \, \text{dollars}]

## Summary:

For a property with 100 acres leased, a production rate of 500 MCF/acre, a gas price of $3.00/MCF, and a royalty percentage of 15%, the total royalty payment would be $22,500.

## Conclusion

The Marcellus Shale Royalty Calculator is a valuable tool for landowners and investors, providing a quick and accurate way to estimate royalty payments from natural gas production. By inputting the acres leased, production rate, gas price, and royalty percentage, users can easily calculate their potential earnings, helping them make informed financial decisions.