What costs can be included before setting monthly gas price for royalty payment?

Our lease has a clause "Lessor's royalty shall not be burdened by any operating costs."  That is the exact language of the clause.

Does this clause exclude the cost of 'refining' the gas before it is placed in the delivery pipeline, thus reducing our royalty per MCF?  

Well is in Louisiana. 

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Posted by Char on May 29, 2025 at 14:42

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