I've been reading from this site for a while but now have a question regarding the wording of an old lease. It says To deliver in the pipelines, to the credit of the first parties, their heirs or assigns, free of cost, the equal 1/8th part of the oil produced and saved from the leased premises. Does this mean the same as gross proceeds?? Also later in the same old lease it says " Second party is to have the privilege of connecting the wells located on this leasehold to a Compressor plant, operating the same jointly with other farms with the purpose of manufacturing case-head gasoline. The lessors agree to accept in full payment as royalty the 1/8th part of the net proceeds received from the sale of gasoline from said plant ... Does this contradict the first statement?? The lease was signed in 1957 so not negotiable just trying to understand. Thanks
The first is about oil and is standard language for leases in those days. I would think it means no deductions, and that is how it was in those days. The second is casinghead gasoline and not oil so is not contradictory. I don’t know if they still make this product. There probably is another clause about natural gas.