I realize the Corporation Commission allows some post production charges. I’m having trouble with lessee not agreeing to No post production charges besides what is allowed. I’ve never had problems in the past just this go round. Any suggestions? (I did hire an attorney to help with this.)
The landowners in my section jointly, successfully insisted on no post production charges and lessee agreed, our lease reads royalty shall not be charged expenses of “production, gathering, dehydration, compression, manufacturing, processing, treating or marketing”. I once heard post production costs can trim 1% to 1 1/2% percentage points off a 25% royalty. We are in Texas. Good luck.
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