Can anyone tell me, hypothetically, if a well written cost-free agreement includes severance tax or excludes severance tax for the individual mineral rights owner?

Second question, these cost-free "confidential" pro quid pro agreements between operators and operating interest entities, do they agree to charge, say, a flat percentage of the gross revenue for severance tax to lend legitimacy to the expenses the operating interest charges to their lessees?  

Views: 211

Reply to This

Replies to This Discussion

My O&G law firm has a page and one half no cost royalty clause for their custom leases and even it can't relieve a mineral lessor from paying their proportional share of severance tax.  Severance tax rates are set by the state, not by the operator or Working Interest owners.  All parties pay their share.

RSS

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



© 2025   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service