Royalty Deductions

Got a proposed lease from EQT. Their thing now is that they won't do leases without some post production deductions. The royalty clause reads.."our percentage"....."after deductions for costs incurred by Leasee or its affiliates for transportation, taxes (including severance taxes), gathering, processing, line loss, and compression."

I have a lease from another company with the same thing, but it says "our proportionate share" of these costs. Isn't that how the deduction "should" read, IF (big if) we were to agree to this? Does anyone know what kind of money we are talking about as to expenses for transportation, processing etc.?

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Permalink Reply by RB on February 2, 2015 at 1:29pm
Wow. Incredible. Absolutely no ethics!
Permalink Reply by Larry Livengood on February 2, 2015 at 1:41pm

Just received our check for February, and the deduction amount was 32% for this month.

I am grossing $0.30 a day/acre and netting $0.20 a day/acre.  Anyone ever hear a landsman quote numbers like that when they were signing up their leases?

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