I have a lease with Jay Bee in the Doc 6 Well they take on average 25 to 30 percent of my check for deduction’s , just wondering if anyone else has wells in Tyler and surrounding counties that would share there deductions see if this is about the average cost on Gathering and processing…
Also this was supposed to have be 15% Gross lease we negotiated, even have the E-Mail where the company rep says since i took the lower royalty percentage it would be a Gross no deduction lease, here is the wording
The Lessee shall deliver to the credit of the Lessor free of cost, in the pipeline to which he may connect his wells, the equal fifteen percent (15%) of all oil and gas produced and saved from leased premises, payable quarterly; provided, Lessee shall pay Lessor a royalty at the rate of Fifty Dollars ($50.00) per year on each gas well while, through lack of market, gas there from is not sold or used off the premises, and while said royalty is being so paid said well shall be held to be a paying well.
January of this year they started showing deductions they had never shown them before so in talking to there main office i was told they have always taken deductions out that the reporting law had changed so they have to show deductions on the royalty statements the amount i thought was Gross was actually after deductions so i never could tell they had been taking deductions since 2016 when the well started production, i thought they always had to show deductions. i would appreciate any input on this wording of the lease is it a Gross lease or Net lease,