My old leases were sold off recently .....the new company sent first Royalty check.....and they deducted gathering fees!
I had been recieving royalties for 14 years....and no gathering deduction fees.
Seems like they are learning from the big boys (CHK)....
Any advice on this development?
Does the lease allow them to deduct gathering fees?
The lease is from 1975 and states:
In consideration of the premises the Leasee covenants agrees: (A) To deliver to the credit of the Lessor in tanks or pipe lines, as royalty, free of cost, the equal one-eighth (1/8) part of all oil produced and saved from the premises: (B) To pay to the Lessor, as royalty for the cas marketed and used off the premisies and produced from each well drilled thereon which is not used for gas storage purposes, the sum of one-eighth (1/8) of field market price per thousand cubic feet of such gas so marketed and used, measured in accordance with Boyle's law for the measurement of gas..................
What company did you have and who did they sell too? I am near you and have Sound Energy, but AEP has the deep rights. No action in this regard from my producer, but in the past he did not take out production fees,,, ha, waiting with baited breath.
AIM Energy LLC is the new company....
Dexter, I will have to read the old lease....but sure it is an old boiler 1 page lease.
Tusc. Thanks, guess I had not heard of AIM Energy as yet.