If one owns an overriding non-participating royalty interest such as granted by document 1950-8590 in Midland county TX, and the document uses language such as “undivided interest” and “free of cost” are producers legally allowed to withhold fees labeled as owner deductions and owner taxes?
Taxes yes, for deductions, you need to send a certified return receipt to the operator with a copy of your “free of cost” document and ask them why they are taking out the other deductions. Many operators use accounting software that automatically takes out deductions unless they are told that they cannot for particular mineral owners.
Thank you for the clarification!
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