gas not rising
Realize that the PA supreme court recently ruled that minimum royalty payments to landowners are measured as net of expenses in developing the production. Since I can only presume production costs have not dropped as well, it means that a 6% drop in the top line commodity price will result in a greater than 6% drop in net profit.. and thus a greater % drop in royalty payments. Anyone receiving royalty payments know what the effective price point for costs is being used for calculating their payments?
PA may have so much gas that the FT energysource blog says exporting may be the game for shale gas producers. See: Exporting shale gas could keep US producers in business. Note how they reference PA production results that were made public recently.
and if that is not enough, more natural gas is becoming available on the international market and coming to North America. Commodities are commodities and that can only put downward pressure on prices here.