Noticing a phrase that’s new to me that companies are putting in their leases lately. Solely from a royalty owner perspective, can anyone shed light on why they might want this language there, and how it might screw a royalty owner?
“…on oil and other liquid hydrocarbons, one-fifth (1/5) of that produced and saved from said land, the same to be delivered at the wells, or to the credit of Lessor into the pipeline to which the wells may be connected; Lessee may from time to time purchase any royalty oil in its possession, paying the market price therefore prevailing for the field where produced on the date of purchase;…”