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. 

Views: 128

Reply to This

Support GoHaynesvilleShale.com

Blog Posts

The Lithium Connection to Shale Drilling

Shale drilling and lithium extraction are seemingly distinct activities, but there is a growing connection between the two as the world moves towards cleaner energy solutions. While shale drilling primarily targets…

Continue

Posted by Keith Mauck (Site Publisher) on November 20, 2024 at 12:40

Not a member? Get our email.

Groups



© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service