"No Cost" Royalty

What is meant by a "no cost" royalty clause?

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Comment by Kat Bloomfield on August 4, 2010 at 6:36
Generally, it refers to a clause in a lease which expressly excepts from allowable deductions from your royalty share post-production costs. The effect of any particular "no cost" royalty clause depends on its actual wording, read in light of case law and the mineral code.

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