After signing two division orders I received a royalty check and the statement attached had 2 Transportation fees for several months. I don’t have a lease with Jay Bee. This is from pooling and I have a percentage of the minerals. Is this normal???
Yes, it is normal. A pooling is a substitute for a lease.
Shrayes,
Unfortunately, in order to tell you what your normal should be we would have to have a copy of your lease. I know you say that you don’t have one, but in order for Jay Bee to have sent you a pooling agreement and the division orders, someone who previously owned that mineral interest had to have signed a lease. Transportation fees are more and more common, but that doesn’t mean that they are allowable. You can start by asking questions from Jay Bee about your mineral interest or retaining someone to ask those questions on your behalf.
Hope this helps! ~Rachel
My statement that it is “normal” was meant that quite often you will get billed for transportation fees. Whether or not they are “allowable” depends upon the original lease or what the particular state regulations are regarding what fees are allowed under pooling rules. Post production costs are allowed in some states like Texas. Oklahoma has slightly different rules which did not generally allow PPC. WV has their own rules.
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Thank you very much for your reply. Very helpful.
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