Royalty Language

Hello:

This is my royalty addendum language. Does it sound okay? What does market enhance gas clause mean?

 

Lessor’s Royalty: For all Oil and Gas Substances that are physically produced from the Leased Premises, or lands pooled or unitized therewith, and sold, Lessor shall receive as its royalty seventeen percent (17.00%) of the sales net proceeds actually received by Lessee or, if applicable, its affiliate, as a result of the first sale of the affected production to an unaffiliated third party, less this same percentage share of all production, severance and ad valorem taxes. In the event Lessee compresses, treats, purifies or dehydrates gas, including casinghead gas or other gaseous substances (whether on or off the leases premises) or transports such gas off the Leased Premises, Lessee in computing royalty hereunder may not deduct from such price the actual charge incurred by Lessee for each of such functions performed. However, if gas is processed or gathered, transported, or treated by an unaffiliated third party before or at the point of sale, then Lessor shall receive its royalty on the net proceeds received by Lessee after such third party gathering, treating and transportation charges. For royalty calculation purposes, Lessee shall never be required to adjust the sales proceeds to account for the purchaser’s costs or charges downstream of the point of sale.

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1w1vl8clda7t4Permalink Reply by 1w1vl8clda7t4 on August 4, 2012 at 1:25pm
Nice try Marcus...hate...what hate...the truth always prevails. You can put lipstick on a pig...but its still a pig!
Permalink Reply by Kenny on August 4, 2012 at 12:21pm
Seriously....so much hate on this site.
1w1vl8clda7t4Permalink Reply by 1w1vl8clda7t4 on August 4, 2012 at 12:32pm
I guess if your leases didn't contain the language they do...maybe...just maybe we could sit down and have a beer...but that's not the case now is it!
Permalink Reply by Kenny on August 4, 2012 at 2:13pm
From what I have heard from landowners, lawyers and my own experience, my client has one of the most landowner friendly leases I have ever seen. What many need yo understand is, just necause we are in the oil/gas business doesnt make us the lying scumbags many make us out to be...
1w1vl8clda7t4Permalink Reply by 1w1vl8clda7t4 on August 4, 2012 at 2:19pm
And apparently it doesn't make you educated either...try typing on word and then copy and pasting...it will give you more credibility.
Permalink Reply by Jack Straw on August 4, 2012 at 2:53pm

RE: "From what I have heard from landowners, lawyers and my own experience, my client has one of the most landowner friendly leases I have ever seen."

Kenny, I would love to see a copy of that lease that you are referring to.

Could you please post a copy of thet lease so that we have something to aspire to.

 

JS

1w1vl8clda7t4Permalink Reply by 1w1vl8clda7t4 on August 4, 2012 at 3:06pm
Let me guess...it's in his paper shredder!
Permalink Reply by Kenny on August 5, 2012 at 4:22am

DISCLAIMER:  I AM NOT TRYING TO ACTIVELY SOLICIT ANY LANDOWNER ON THIS SITE BY POSTING THIS.

Take a look at the BP/ALOV lease and you will see.

Permalink Reply by Kenny on August 4, 2012 at 2:28pm
I'm sorry BGJ, I am replying from my phone and I didn't feel the point was worth me getting up from watching my kids to make the reply on my laptop.

Again...so much hate and negativity on this site.
1w1vl8clda7t4Permalink Reply by 1w1vl8clda7t4 on August 4, 2012 at 2:35pm
No....the negativity comes from &*%$& like you who will sit at a landowners kitchen table and rape them silently from generations of sweat and blood...that's negativity pal...pure evil!
1w1vl8clda7t4Permalink Reply by 1w1vl8clda7t4 on August 4, 2012 at 2:37pm
And by the way...anytime you want to have a rebuttal on your lease provisions...bring it on!
Permalink Reply by Frank Walker on August 4, 2012 at 3:02pm

You have nailed it, BGJ.  Oh, God, have you ever.  So many of these industry people like to portray themselves as good, honest, God-fearing Christians.  But they routinely come in here, and go into landowners' homes as well, spreading FUD (fear, uncertainty, doubt) to the best of their ability.  These people are not good people.  They are instead, as you suggest, generational rapists.  Their evil transcends the present and reaches to the children and yes, even to the grandchildren of today's landowners.  All the while they smile their watermelon smiles and purr like Cheshire cats as they take advantage of landowners ill equipped to deal with their brand of thievery.  Some of them have spewed their lies for so many years they have come to believe the lies themselves.  When these industry people go to their final reward, it's going to be an exceptionally fiery event.  They're gonna need asbestos suits for sure! 

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