Do you mean no deductions? If you do it could depend on what the rest of your lease says. If there is a market enhancement clause all bets are off. It also depends on the O&G company. Many people who have a NO Deductions lease still get deductions taken out by some companies and some are fighting it. If it is a true no deduction lease and you have an honest company you will still get taxes taken out and the amount and type depends in which state the well is located. And even some counties and townships have taxes on production.
I am not sure but does it mean that 1/8 of the oil and gas is to go to the party free of charge that owns the oil and gas rights? The oil company gives it to them free of charge. That is what is sounds like but I am not an expert and probably no help. Maybe others will way in. Maybe you need a lawyer. What is the issue? Is the oil and gas company not giving you free fuel?
It would seem the language, although simple, would preclude the producer from taking deductions for anything (except taxes), but today's environment is a minefield in regards to deductions, authorized or not.
The question that comes to mind is this-who is the producer? Once that is known, you may be able to find evidence on this forum about their deduction(s) policy.
Best of luck to you.