Net Pay Isn’t Discovered. It’s Defined.

James L Hawkins

3/3/20261 min read

Net Pay Isn’t Discovered. It’s Defined.

Net pay isn’t found.
It’s defined.

Every cutoff is a decision.
Every decision removes rock from consideration.

Porosity cutoffs, water saturation cutoffs, shale cutoffs — none of them are neutral.
They encode assumptions about economics, completions, and risk tolerance.

Two people can use the same data and produce very different net pay — and both can be technically “correct.”

That’s why net pay debates feel emotional.
They aren’t really about geology.
They’re about consequences.

There is no correct cutoff.
There are only cutoffs that are appropriate to the decision — and cutoffs that aren’t explained well.

Net pay should always travel with its assumptions and sensitivity.
Without that, it’s just a number pretending to be objective.