# Are severance and excise taxes generally excluded from "no deductions" clauses?

**URL:** https://www.mineralrightsforum.com/t/are-severance-and-excise-taxes-generally-excluded-from-no-deductions-clauses/84029
**Category:** Caddo County, OK
**Created:** [October 4, 2025, 1:41am UTC](https://www.mineralrightsforum.com/t/are-severance-and-excise-taxes-generally-excluded-from-no-deductions-clauses/84029 "2025-10-04T01:41:22Z")
**Posts on this page:** 5
**Page:** 1

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### Author: ![Dorothy\_Black](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/d/a183cd/32.png) [@Dorothy\_Black](https://www.mineralrightsforum.com/u/Dorothy_Black)
#### Post date: [October 4, 2025, 1:41am UTC](https://www.mineralrightsforum.com/t/are-severance-and-excise-taxes-generally-excluded-from-no-deductions-clauses/84029/1 "2025-10-04T01:41:22Z")

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Lessor’s proposed lease defines “gross proceeds” as gross proceeds realized by Lessee from the sale of gas or other substances, less a proportionate part of the production, severance and other excise taxes and the cost incurred by Lessee in delivering, processing, compressing or otherwise making such gas or other substances merchantable. It then adds a “No deductions” clause in an Addendum to the lease but doesn’t specifically mention these taxes as being excluded. Are severance and excise taxes then deductible from Lessor’s royalty? If so, is this standard practice?

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### Author: ![M\_Barnes](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/m_barnes/32/10942_2.png) [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [October 4, 2025, 2:12pm UTC](https://www.mineralrightsforum.com/t/are-severance-and-excise-taxes-generally-excluded-from-no-deductions-clauses/84029/2 "2025-10-04T14:12:18Z")

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Standard practice for severance and other taxes to be deducted from the gross owner royalties.

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### Author: ![Awhartonmd](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/a/c4cdca/32.png) [@Awhartonmd](https://www.mineralrightsforum.com/u/Awhartonmd)
#### Post date: [October 5, 2025, 3:36am UTC](https://www.mineralrightsforum.com/t/are-severance-and-excise-taxes-generally-excluded-from-no-deductions-clauses/84029/3 "2025-10-05T03:36:07Z")

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Yes, operator must pay the taxes.

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### Author: ![M\_Barnes](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/m_barnes/32/10942_2.png) [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [October 6, 2025, 12:47pm UTC](https://www.mineralrightsforum.com/t/are-severance-and-excise-taxes-generally-excluded-from-no-deductions-clauses/84029/4 "2025-10-06T12:47:46Z")

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The operator pays their share of the taxes and the mineral owner pays their share (unless you have a special clause in the lese where the operator pays it all-very rare.)

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### Author: ![system](https://www.mineralrightsforum.com/uploads/db5755/original/3X/6/c/6c7c56608c843272ad6e3662ce9562a5956f173e.png) [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [January 2, 2026, 1:41am UTC](https://www.mineralrightsforum.com/t/are-severance-and-excise-taxes-generally-excluded-from-no-deductions-clauses/84029/5 "2026-01-02T01:41:31Z")

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