Video · 52 seconds · captions on
Deductions on your gas royalty (52 seconds)
Gathering, compression and processing costs can show up as deductions on a gas royalty. Your lease decides whether they reach you. See how to read the wording, what is worth a question, and how to ask which clause allows them. A 52-second cut of the full video.
Transcript
Your gas statement may show deductions. Can the operator charge them to you? Your lease decides. Say your share of a month's gas sold for a thousand dollars. Gathering, compression and processing take two hundred eighty. Seven hundred and twenty dollars reaches you. The deductions took twenty-eight percent. Read where your lease values your royalty. Wording like free and clear of costs can keep them off. Market value at the well usually shares them. Which clause of my lease allows these deductions? Please send the rates and what each covers. Send it by certified mail. The payor has sixty days to explain. Try our free gas royalty calculator. The sources are on screen.