methane.land

Who can sell this gas, who is owed on it, and who signs for the pad.

methane.land is our gas-rights screen, for gas that is flared, shut in, surplus or sold on terms you want to beat. Send the rate, the county and who owns the surface, and a landman answers four questions from the lease and the county records: who can sell the gas, who is owed royalty on it, which flaring rules bear on it, and whose signatures a power or compute pad needs. The power math below runs on your own numbers.

For operators and working interest owners, surface owners, mineral and royalty owners, and the power and compute companies looking for gas.

Looking for a buyer, a gas supply or a site, not a rights screen? Introductions are made at methane.exchange, the origination desk of the same landmen.

Three facts start a screen

  1. The gas. Rate in MCFD and where it goes now: flared, vented, shut in or part sold.
  2. The location. County and state, and the lease or well name.
  3. The ground. Who owns the surface where equipment would sit.

A gas analysis and a copy of the lease help if you have them. They aren't needed to start.

Process flow sketch: wellhead to separator, conditioning, custody meter, genset and load, with the flare as a branch Casinghead gas leaves the wellhead, goes through a separator that sends oil and water to tanks, through optional conditioning, and across the custody meter where royalty is figured. A tee sends gas to the flare through a backpressure valve for upsets and downtime. The main line feeds a gas engine and generator on a site pad the surface owner signs for, and the power goes to lease load, compute containers or the grid. PI 101 WH-100 Wellhead casinghead gas 3"-NG-101 1 V-200 Separator oil, water to tanks X-250 conditioning if the gas needs it 3"-FG-102 2 FQ 300 Custody meter royalty figured here 2"-FG-104 PCV-901 3 FL-900 Flare today: takes all of it after: upsets and downtime SITE PAD the surface owner signs for this ENG G G-400 Gas genset 4 L-500 Lease load ESPs, compressors Compute containers Grid if a tie exists METHANE.LAND PFD-001 REV 0 Stranded gas to on-site power Screening sketch. Not for construction. Process flow sketch, top to bottom: wellhead, separator, conditioning, custody meter, flare branch, genset and load Gas runs from the wellhead through a separator and optional conditioning, across the custody meter where royalty is figured, past a tee to the flare, and into a gas genset on a site pad the surface owner signs for. Power goes to lease load, compute or the grid. WH-100 Wellhead casinghead gas 1 V-200 Separator oil, water to tanks X-250 Conditioning if the gas needs it 2 FQ 300 Custody meter royalty figured here 3 FL-900 Flare today: all of it after: upsets only SITE PAD surface owner signs ENG G G-400 Gas genset 4 L-500 Lease load Compute Grid PFD-001. Screening sketch, not for construction.

Equipment list. Each tag is a section below.

  1. WH-100WellheadWhat the gas is
  2. V-200SeparatorMaking it fuel
  3. FQ-300MeterWho gets paid
  4. FL-900FlareThe rules
  5. G-400GensetThe power math
  6. L-500Load and siteWho signs
WH1003"-NG-101

What the gas is

Every screen starts with the stream coming off the wellhead. A rate alone doesn't size a project. These do.

Stream 1, wellhead gas: what to send and why
PropertySendWhy it matters
RateMCFD now, and how fast it's fallingFlush production drops fast. Genset size is often set off the rate six to twelve months out, not the IP.
Pressurepsig at the separatorLow-pressure gas may need a compressor ahead of the engine.
Heating valueBTU/scf from a gas analysisRich casinghead gas carries heavy ends that knock engines. Lean gas makes less power per MCF.
H2Sppm, if anySour gas gets treated before the engine and changes the safety plan on the pad.
CO2 and nitrogenmole percent from the analysisInerts lower the heating value and derate the engine.
Where it goes nowFlared, vented, shut in or part soldSets which rules apply and which lease clauses come into play.
Pipeline outlookWhen, if ever, a gathering line gets thereA tie-in a few months out and a tie-in years out lead to different site paper.
V2003"-FG-102

Making it engine fuel

The separator splits oil, water and gas. What comes off the top is rarely engine-ready. Rich gas usually runs through a JT skid or a refrigeration unit to drop out the heavy ends, and sour gas goes through a scavenger.

That's equipment work for the genset vendor and your engineer. The screen flags where it's likely so nobody prices a project on raw wellhead BTU.

FQ300

The meter is where royalty gets figured

Gas sold to a genset is still gas sold. The custody meter is the sale point, and the gas-rights questions all hang on it.

Who can sell the gas?
The working interest owners, usually through the operator under the JOA. A non-op owner may take in kind. The power or compute company needs a gas purchase agreement with whoever holds the right to sell.
Is gas burned for power free of royalty?
Most leases let the operator use gas royalty-free for operations on the lease, and gas running your own ESPs and compressors may fit. Gas running somebody else's compute load is usually treated as a sale, and the royalty owners will expect to be paid on it. Read the free-use clause before anyone promises otherwise.
Does the pay deck change?
A new purchaser and a new sale point usually mean new division orders or a revised deck. The decimals stay the same; who pays them, and on what volume, changes.
Is the lease held by shut-in royalty?
If the well has been shut in for want of a market and shut-in payments are holding the lease, starting a sale changes that. Read the shut-in clause, and the unit, before the first MCF moves.
Fee, state or federal minerals?
BLM, the Texas GLO and the New Mexico State Land Office each have their own rules on gas used on the lease, sold or flared. On fee land it comes down to the lease form.
FL9002"-FG-104

The rules pushing gas off the flare

Flaring rules are one reason these projects get a look. This is the short version as of September 2026, for orientation only. Rules and dates move, so check the current text before anyone files anything.

Flaring and waste rules that bear on a gas-to-power project
WhereRuleWhat it doesFor a project
Texas RRC Statewide Rule 32, 16 TAC § 3.32 Limits flaring and venting without an exception. A staff-approved exception is capped at 180 days, except for volumes of 50 mcf a day or less for each gas well, oil lease or commingled vent or flare point. A renewal rests on a showing that “the conditions for which the initial exception or latest renewal was granted have not significantly changed despite a good-faith attempt by the operator” to direct the gas to or use it for purposes and uses authorized by law. The rule does not say how running an engine on part of the gas changes an exception. Read the rule, subsection by subsection.
New Mexico OCD, 19.15.27 NMAC Operators must reach a gas capture rate of 98% by the end of 2026. Gas put to use counts toward the capture rate. Ask how your operator reports it.
Federal, oil wells EPA NSPS OOOOb, new and modified sources; emission guidelines OOOOc, existing sources (40 CFR part 60) Phases out routine flaring of associated gas at new oil wells: sales line first, then on-site fuel, another useful purpose or reinjection. Existing wells are reached through state plans, which are still being written. On-site power is one of the named ways off the flare at a new well. EPA has moved and revised several dates since 2025, so confirm what applies to your well.
Federal and Indian leases BLM, 43 CFR subparts 3178 and 3179 Royalty-free use of lease gas, waste prevention, and when flared or vented gas owes royalty. Flaring can owe royalty with no sale behind it. A 2024 federal court order stops BLM from enforcing the 2024 rule in Texas and four other states, so check where it stands.
Federal methane fee Clean Air Act § 136 Congress moved the charge to emissions from 2034 on. Not a reason to move this year, whatever a vendor deck says.
G400

How much power the gas makes

A data sheet for the genset. Change any line; the stream numbers match the drawing up top. It's straight energy balance from your inputs, a screening estimate and nothing more: not an offer, an appraisal or an engineering study.

Data sheet G-400: power screen

WH-100 wellhead

MCFD
BTU/scf

From the gas analysis. Pipeline gas runs near 1,000; rich casinghead gas runs higher.

% a year

Your own number. It drives the 12-month rate and the spreadsheet schedule.

V-200 / X-250 conditioning

% of BTU

Zero if the gas goes to the engine as is. A JT skid on rich gas takes some energy out as NGL; the skid vendor can give you the number.

G-400 genset

BTU/kWh

Off the genset spec sheet, on the same basis as the heating value (HHV or LHV). Smaller units burn more fuel per kWh.

% of hours

Raw field gas means downtime. When the engine is down, the gas goes to the flare.

FQ-300 money at the meter

$/MMBtu
$/kWh

What a kWh is worth to whoever uses it: diesel it replaces, a host's price, a utility rate.

decimal

The lease royalty, such as 0.125, 0.1875 or 0.25.

Enter your own gas rate to run the screen. Heating value, decline, liquids, heat rate, runtime and royalty start at common screening assumptions; replace them with your analysis, spec sheet and lease. Nothing here is a measured or available volume.

Stream 4: power the gas can carry

Enter a rate kW continuous

Gross output from the gas. Engine parasitic load and altitude or heat derate take some off.

Stream table, screening estimate
Wellhead gasEnter a rate
Fuel to the engineEnter a rate
Still to flare in downtime, today's rateEnter a rate
Energy at runtime, at today's rateEnter a rate
Kept off the flare, at today's rateEnter a rate
In 12 months at the declineEnter a rate
Each 100 MCFD of this gasEnter a rate

Yearly Mcf, MWh and dollar lines hold today's rate for a full year, with no decline. The 12-month line and the .csv schedule apply the decline.

Gas sale, operator and WI owners

Add a price

Royalty on it: Add a price, before any deductions the lease allows.

Power value, whoever uses it

Add a price

Fuel cost at your gas price: Add a price.

Same gas, two sides of one sale. Don't add them together.

Find a buyer or a site at methane.exchange

This is gross output from your numbers, not an engineering study. For introductions between gas suppliers, buyers, site owners and equipment providers, go to methane.exchange.

L500480 V

Where the power goes, and who signs for the site

The load decides the deal. Power for the lease's own ESPs and compressors stays inside the oil and gas lease. Power for a compute container or the grid brings in a third party, and a third party needs its own right to be on the ground.

Lease load
Replaces diesel gensets or utility power on the lease. Usually the operator's equipment on the operator's pad.
Compute
Containers set next to the gas by a hosting company that buys the gas or the power. Needs a site lease and a gas or power contract.
Grid
Only where a line and an interconnect are already close. Utility and grid-operator rules decide the rest.

Surface questions we run down

  • Does the mineral lease cover it? The lessee's right to use the surface reaches what's reasonably necessary to produce the lease. In Texas, a third party's compute site is a harder fit, so a surface lease from the surface owner is the usual route.
  • What does the SUA say? Pad size, equipment, noise, lights and assignment limits in the existing surface use agreement often decide whether a new skid fits.
  • Where, exactly? Pad location and size, the road in, and the line from the separator to the skid. Any line that leaves the lease needs its own ROW.
  • Noise and lights. Gensets run around the clock. Distance to the house and the pens matters to the owner and belongs in the lease.
  • Term and removal. Owners often tie the term to the gas and set a removal deadline, a restoration standard and a bond.
  • Accommodation doctrine. In Texas it governs how the mineral side uses the surface (Getty Oil Co. v. Jones; Merriman v. XTO Energy). It can protect an existing surface use. It doesn't give anybody a right to put a third party's plant on the ranch.

Who gets paid for what

Four parties, four sets of paper. The screen lists the agreements that usually come up and who usually signs.

Send the gas facts

One of our landmen reads what you send and replies by email or phone. Tell us which side you're on so we know how to answer.

What the screen covers

  • A power estimate from your numbers, with the assumptions written down.
  • The Texas, New Mexico and federal flaring and royalty rules that bear on it, cited to the section.
  • Who owns the surface and minerals at the site, read from the county records.
  • A list of the agreements that usually come up and who usually signs each: gas purchase, surface lease, ROW, division orders.

We're landmen, not engineers. Where a question needs an engineer, the screen says so. The first reply is a few questions; a full screen is scoped with you in writing before the record work starts.

Process data request

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Legend and abbreviations

Terms on the drawing and in the paperwork.

MCFDThousand cubic feet a day
The gas rate everything else scales from.
MMBtuMillion BTU
The energy unit gas is priced in. MCFD times BTU/scf, divided by 1,000, is MMBtu a day.
BTU/scfHeating value
Energy in a standard cubic foot of gas. Sets how much power each MCF makes and whether the gas needs conditioning.
HRHeat rate
BTU of fuel a genset burns for each kWh it makes. Lower is better. It's on the spec sheet.
Casinghead gas
Gas produced with oil from an oil well, as opposed to gas-well gas.
Stranded gas
Gas with no pipeline to take it, or not enough capacity when one gets there. On a drawing, a line that ends in a blind.
Flare mitigation
Moving gas off the flare to a use: sales, lease fuel, power or reinjection.
Flare to compute
Compute containers at the wellsite running on gas the pipeline can't take.
JTJT skid
Joule-Thomson unit: drops the gas pressure to chill it and knock out heavy ends before the engine.
FQCustody meter
The meter where gas changes hands; FQ is its instrument code. Price and royalty are figured on its volume.
Free-use clause
Lease language that lets the operator burn gas for lease operations without paying royalty on it.
Shut-in royalty
A payment that keeps a lease alive while a well capable of producing is shut in for want of a market.
DODivision order
The statement of each owner's decimal interest that the purchaser or operator pays on.
SUASurface use agreement
The contract between the operator and the surface owner for pads, roads, lines and damages.
SWR 32Statewide Rule 32
The Texas Railroad Commission rule on flaring and venting, 16 TAC § 3.32. See the Rule 32 guide.
OOOOb/cEPA methane standards
Federal oil and gas methane rules for new sources (OOOOb) and existing sources (OOOOc), including limits on routine flaring.
WIWorking interest
The share of a well's costs an owner carries and the share of the production it keeps, before royalty.
JOAJoint operating agreement
The contract that lets the working interest owners share operations and costs under one operator.
NGLNatural gas liquids
The heavy ends that drop out of rich gas at a JT skid or refrigeration unit and sell as product.
ESPElectric submersible pump
An artificial-lift pump run on electric power at the well, one of the lease loads a genset can carry.
IPInitial production
A well's rate in its first days or months, usually its highest.
RRCRailroad Commission
The Texas agency that regulates oil and gas, including flaring under Statewide Rule 32.
OCDOil Conservation Division
The New Mexico agency that regulates oil and gas, including flaring and gas capture under 19.15.27 NMAC.
GLOGeneral Land Office
The Texas agency that manages state-owned minerals and surface. New Mexico's counterpart is the State Land Office.
PFDProcess flow diagram
A schematic of how a stream moves through equipment. The drawing at the top of this page is a simplified one.