EQT Corporation
625 Liberty Avenue, Suite 1700 Pittsburgh, PA 15222?3111
p: 41255345700 

 

TO: EQT Royalty Owners
FROM: EQT Owner Relations Team
DATE: March 2,2018

RE: Changes to Distribution of Royalties

Since inception of leases allowing for the deduction of post?production expenses, EQT has been subsidizing a
portion of the cost to gather the gas produced from those Producing companies, such as EQT, are
charged various costs to gather the gas for transport. As part of these gathering costs, EQT has been paying the
depreciation, depletion and amortization costs, and return on investment (ROI) charges, which under
state law are permitted to be deducted as a post?production expense from royalty checks.

Beginning in 2018, EQT and its royalty owners will be sharing in these expenses and EQT will be
allocating royalty owners with their pr0portion of gathering charges as related to and ROI costs. As a
result, if your lease provides for deductions, you will likely see an increase in the amount deducted for post-
production expenses on your March 2018 royalty statement.

Should total gathering expenses exceed the proceeds received for the sale of the gas, it's important to note that
EQT, unlike other producers, will not issue a negative royalty check to its leaseholders. While this is a practice
that may be permitted in the language of certain leases, EQT royalty owners will not be responsible for
reimbursing EQT for gathering expenses that exceed royalty payments.

if you have any questions regarding changes to EQT's royalty payment practices, please contact EQT Owner
Relations at OwnerRelations@eqt.com OR call 844-EQT-LAND We value our continued
partnership and thank you for being an EQT leaseholder.