Anyone having problems with White Star taking out deductions?

It may be difficult to craft lease language which prevents post production deductions.

Post-Production Costs after Hyder by oil and gas attorney John McFarland

..."The lesson from these cases: a royalty clause, if based on proceeds received by the lessee, should also provide that "proceeds" means the price received in the first arms-length transaction between the lessee or any affiliate of lessee in a sale to a third party which is not an affiliate of lessee. "Affiliate" should be clearly defined. Heritage disclaimers don't work. And always avoid "at the well" or "on the lease" language in a royalty clause.'