AAPL class on how to take deductions from the Royalty Stream for Post Production Expenses




For anyone who is interested in the landman side of the equation, there is a class in OKC and in Houston on the post production expenses. I am signed up in Houston. I know several folks from NARO who are going to the OKC one.

1 Like


Note the location in OKC. Learning from the masters.



The reason I signed up was to learn as much about how the landmen are trying get post production charges into our leases and how much the mineral owner doesn’t want them in there. Hopefully, the OKC one will focus on the OK laws. Someone, take good notes. I am going to the Houston ones which will probably focus on the TX laws. I will take notes. OK is an “implied covenant to market state” and TX is not. Makes a big difference!

1 Like


It would be wonderful is someone who attends could give a report on this class at the OK NARO convention this year. Would you please suggest it to the planners. Since you are on the board, you probably know how to contact them.

1 Like


A few of the OK Board members are attending in OKC. I am attending in Houston. I will pass it along.



M_Barnes, could you please explain a little more your last two sentences? Thank you, Thomas Gray



Oklahoma (and several other states) is an "implied covenant to market state. It means that the operator is supposed to get your product to market without charging you any post production charges. If they change the wording of the lease to include those charges and you sign it, then they can charge. The definition of “marketable product” can be quite challenging.

Other states such as Texas are allowed to charge post production charges, so the wording of their leases is different than an OK lease and very important to understand.

Not giving legal advice, just making a generalization from many legal talks that I have heard.

That is why I am going to the talks. Will take notes.