Hi and thanks in advance. My grandmother got a lease with a market enhancement clause. It stated there will be no deductions for producing, gathering, processing, transporting and marketing etc. It however went on to say that any SUCH costs resulting in ENHANCING the value of the marketable oil and gas to receive a better price may be deducted from her share of production so long as they are based on lessee actual cost. In no event shall she receive a price that is less than or more than the priced received by lessee as per their percentages as per the contract.
Can anyone explain what the ENHANCING thing is all about?
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