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Gas lease advice

1,121 Views | 0 Replies | Last: 7 yr ago by tjones
rafkennel
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Quote:







"The royalty interest herein shall be calculated without deduction for costs incurred for compression, dehydration, separating, treating, processing, transportation or otherwise making said oil or gas ready for sale prior to the hydrocarbons leaving the leased premises (or lands pooled therewith), but may be charged with applicable production and severance taxes. Notwithstanding anything to the contrary herein, Lessor shall bear its proportionate share of any post production costs incurred by Lessee after the produced hydrocarbons have left the leased premises (or lands pooled therewith) and prior to the point of sale. In the event Lessee contracts with an affiliate to provide any post production services, the costs charged to Lessor hereunder shall not exceed the costs which would have been charged by a third party under an arm's length contract to provide the same or similar services"

Just wondering if this is standard lease language
I'm not sure about the off lease expenses
tjones
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Get an OG attorney to negotiate it for you. Do not try to do it yourself.

Those deals go sideways quickly without someone looking out for your interests.
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