When a lease stipulates:
"To deliver to the credit of lessor, free of cost in the pipe line to which lessee may connect his wells......"
is it okay for oil companies to deduct for CMG (Compression, Gathering & Treat)?
Dear Ms. Johnson,
Likely there is continuing language in the royalty provision that provides for deductions of certain costs. You will need to read a little further in the same paragraph to find the answer.
"The Lord Giveth and the Lord taketh away." So does the fine print. The entire lease would need to be examined.
The only thing that will save you is a no deducts clause in a private lease form.