# CMG Deductions from royalty check

**URL:** https://www.mineralrightsforum.com/t/cmg-deductions-from-royalty-check/22278
**Category:** Law & Legal
**Created:** [January 2, 2012, 10:38pm UTC](https://www.mineralrightsforum.com/t/cmg-deductions-from-royalty-check/22278 "2012-01-02T22:38:24Z")
**Posts on this page:** 3
**Page:** 1

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### Author: ![Cynthia\_Johnson](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/c/da6949/32.png) [@Cynthia\_Johnson](https://www.mineralrightsforum.com/u/Cynthia_Johnson)
#### Post date: [January 2, 2012, 10:38pm UTC](https://www.mineralrightsforum.com/t/cmg-deductions-from-royalty-check/22278/1 "2012-01-02T22:38:24Z")

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When a lease stipulates:

“To deliver to the credit of lessor, free of cost in the pipeline to which lessee may connect his wells…”

Is it okay for oil companies to deduct for CMG (Compression, Gathering & Treat)?

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### Author: ![Buddy\_Cotten](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/buddy_cotten/32/5079_2.png) [@Buddy\_Cotten](https://www.mineralrightsforum.com/u/Buddy_Cotten)
#### Post date: [January 28, 2012, 4:46pm UTC](https://www.mineralrightsforum.com/t/cmg-deductions-from-royalty-check/22278/2 "2012-01-28T16:46:42Z")

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Dear Ms. Johnson,

Likely there is continuing language in the royalty provision that provides for deductions of certain costs. You will need to read a little further in the same paragraph to find the answer.

“The Lord Giveth and the Lord taketh away.” So does the fine print. The entire lease would need to be examined.

The only thing that will save you is a no deducts clause in a private lease form.

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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: [August 15, 2018, 4:02am UTC](https://www.mineralrightsforum.com/t/cmg-deductions-from-royalty-check/22278/3 "2018-08-15T04:02:43Z")

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