lessee agrees to pay lessor as royalty for the oil gas hydrocarbons and by products produced and marketed from leased premises. the price upon which royalty is calculated shall not be less than fair market value for gas oil and hydrocarbons so produced based on arms length transaction for similarly situated wells in the area producing the same quantity ,quality ands being sold at the same point of sale.Payments of royalties for gas oil and other hydrocarbons marketed during any calender month to be on or about the 30th day after receipt of such funds by the lessee. There shall be no deductions from said royalty payment for any reason,directly or indirectly,including but not limited to costs Lessee incurs for producing,gathering,storing ,seperating,treating,transporting,dehydrating,compressing,processing, marketing such oil and or gas, nor shall there be any deductions for taxes, assessment,or any other pre -post production costs. Production from the leased premises shall be measured in accordance with Boyle's Law for the measurement of gas at varying pressures,on the basis of 10 ounces above 14.73 pounds of atmospheric pressure, at a standard base temperature of 60F degrees and stipulated flow temperature of 60degrees,without allowance for temperature and barometric variations. This measurement shall be at the well head. Reports, in reasonable and customary format,pertaining to the calcualtion of Lessor's royalty for any and all wells drilled on the leased premises or lands unitized or pooled with the Leased Premises shall be made reasonably available to Lessor."
In the beginning it states lessee agrees to pay lessor as royalty for the oil,gas,hydrocarbons and by products produced. but under the NO Deductions section the hydrocarbons and byproducts are not stated.
Are they trying to fleece me??? I been told CHK is screwing people by stealing the byproducts such as NG liquids. It doesn't state there shall be no deductions for hydrocarbon or byproducts.
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If the word chk is in any paper work good luck get a real gas oil attorney pay the big bucks .if not forget that any body ever contacted you ! !
not CHK but CHK 2.0 aka AEP
And larchmont group, jamestown group and probably 50 others beware
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