If your lease is 12.5 % royalty on any oil and or gas and states to be paid at No cost, then what would any costs be that an OG company would feel is legit?

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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.

Dott, it’s an old lease my great great grandfather signed that states 1/8 part Of all oil and gas to be produced and saved from said premises, to be delivered in the pipeline to the credit of first party, free of charges. Which I take as at no cost for anything plain and simple.
There is no market enhancement clause or any other mention of deductions !!! Simple lease simple terms from a simple time.

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?

No issue as of yet, just preparing or attempting to prepare for future issues, well is being drilled now and trying to look at the issues pertaining to an old basic lease.


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.

If they (EQT) the producer, is going by today’s environment/minefield as opposed to the environment when the lease was signed, then wouldn’t that be an obligation to renegotiate to today’s? As far as I know a lease is a written binding contract and anything other than what’s in that contract is reason to terminate it. I’d say it will be a waiting game to see how this all plays out, including the free gas that’s also in the lease.
You won’t receive free gas from any new deep well drilled by EQT maybe a once a year payment 1200 or something like that. And if it’s an old lederhosen EQT lease at 12.5% royalty you maybe surprised when the check comes with the deductions column


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