Net vs. Gross Royalty calculations

When using the various royalty calculators is there an "average" amount or percentage to deduct for a net lease?  When I'm calculating potential royalties for someone who has a net lease, their royalty amount would be reduced by the expenses of transport, processing, etc.  Is there any way to factor those expenses in to the calculation?  Is there an industry accepted percentage, say - 5, 10, 20% to deduct for expenses?  I want to be able to give people realistic estimates of what they might expect to see.  Thanks in advance for any input you can share.

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LandownerPermalink Reply by bungalow_steve on November 7, 2012 at 9:24am

Is not a percentage but a fixed amount, around 50 cents/mcf for natural gas as an average.


LandownerPermalink Reply by Kathleen on November 7, 2012 at 9:41am
A lot of the calculators say its a net amount shown.
Permalink Reply by Cheryl on November 8, 2012 at 2:26pm

Thanks Matthew - that's very helpful info.  And yes, I always estimate on the high side...always better to end up with more than you expected!

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