Which county and state? They are very reputable but always a good idea to involve an attorney in leases.
Tyler County. W.Va.
Nancy, How are you, and are you keeping busy? Lots going on in Tyler.
Yes but not a lot in Ritchie! anyway I keep my eyes open. And the Tyler is mostly in Ellsworth, as I can remember.
Their deductions on my lease are egregious compared to other royalties I receive. Make sure your lease is ABSOLUTELY bulletproof and they cannot deduct for anything.
I just looked it up for you, their deductions from my royalties this year, year to date, are 50%! Watch out for these crooks! They will bend you over every chance they get!
Debra, Please make sure you have an attorney look over the lease or someone who can help you deal with the landman.
My family was dealing with Antero in Wetzel, and had a lot of modifications done to the lease.
Get out of that lease the General warranty clause, and the post production on the royalty.
We had all this added.
Marcellus depth only.
18.5% on royalty
$5000 per ac bonus
Hold harmless clause
A better "Shut In" amount.
Hope this helps!
I have one lease with market enhancement clause that I signed before I knew what was going on, with the prices being low I get nothing in royalties due to all the deductions. I have another lease with the clause below with the same company and I have 0 deductions which is very nice
COST FREE ROYALTY: Lessee agrees to pay Lessor’s royalty based upon 18% of the gross proceeds received by Lessee (or its affiliate) in a sale of oil, gas or other hydrocarbons produced and sold hereunder to the first non-affiliated third-party purchaser at the point of sale to said non-affiliated third-party purchaser.
To the extent there are post-production costs incurred between the well and the point of sale to the first non-affiliated third-party purchaser that are subtracted, netted, or deducted, directly or indirectly, from the gross proceeds paid to Lessee (or its affiliate), then such costs will be added back for purposes of calculating Lessor’s royalty.
TRN3 - Transportation
FUL4U - Fuel
GTH3 - Gathering
TRN - Transportation (again?)
CMR1 - Compression (again?)
OH_SEV2 - Severance tax
PRC2 - Processing
Those are all the things they are taking deductions for, according to my royalty statements. There are other codes that are listed in the key for deduction codes that they are not taking (yet).
The kicker is these crooks have their own midstream company, so I suspect that they are taking even more of my money by either selling to their own midstream company at a reduced cost, or having their midstream company charge their production company high prices for their transportation/services. Wouldn't be surprised at all if they were doing BOTH.