I have just received my first royalty check for my share of a non-participating royalty interest inheritance. The company has deducted almost all of the money received for gathering and processing fees. I thought that NPRI were not charged these fees or any fees except for the severance tax. Can you explain WV laws on this? Or a place to talk to other NPRI owners? Thanks…
Go back to the lease itself. If it allows post production charges, then they will take them. You may be thinking about an OverRiding Royalty Interest which does not usually have PPC.
Non-Participating Royalty Interest owners do not have a lease. SWN will not give me any information about the mineral owners lease so how will I know if they are correctly deducting these fees.
In some cases, the NPRI can be tied to a lease, but in most cases, probably not. The Division Order analyst at the operator has the information you need, just hard to get it sometimes. In areas with gas production, the post production charges can be very burdensome. Another factor to consider is the accounting software. In many cases, it is set to default to charging for the post production costs. You may have to send a certified letter return receipt reminding them that you are an NPRI owner and asking for a breakdown and explanation of why they are charging you when they should not and to refund the charges.
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