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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About As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More	Links About General Info Guidelines Supporters Donate Advertise Subscriptions Contact us

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As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More

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