Good morning. Where do I start with the RRC regarding a complaint against a Liberty County, TX well operator who is taking, what I believe to be, unauthorized deductions for transportation costs from my monthly oil/gas royalty? I have been receiving production payments for two years when, starting with my July 2019 check, there is a large deduction for transportation costs. Thanks,
Post production charges are allowed in Texas unless forbidden by the lease. Go back and read your lease first. Then contact the operator and ask “why now”? Huge problem with pipeline access in parts of Texas, so there have been new increases in costs. Request info from the operator first before filing a complaint. Sometimes, it is a software glitch in the accounting software.
The deduction of post production charges are a contractual issue between the mineral owner and the lessee. The RRC regulates drilling, production and volumes and is not concerned about sales revenues and related costs. RRC will not accept complaints about transportation or other costs being deducted against royalties. You may want to have your oil and gas attorney review your lease.