I have 2 different things i wanted to ask about that is in my contract. Ill start with the terms and provisions of the gas lease. It states that lessor's royalty shall never bear or be charged with,directly or indirectly, any part of the cost or expenses of production,gathering ,dehydration,compression,transportation,manufacturing, processing,treating or marketing of oil and gas produced from the leased premises. The contract was with Chesapeake Exploration but my checks come from Southwestern Entergey(Seeco.inc. On the paper that shows the production volume and value and well name it lists that money is being deducted from royalty interest for production, gathering, compression and in "other". Not sure what that is.How do i present this to Seeco to get them to reimburse me for what they have taken out of the royalties and to stop deducting it? My other question is about the contract in that when it was drawn up my uncle did the negotiating with chesapeake and on the lease it covers 121 acres of which covers 3 sections. section 6 section 31 and section 36. There are wells on 31 and 36 but not on section 6 and we do not receive any royalty money from any cross section wells going into 6. As far as i know there is no gas being pulled from 6 . last year we leased 5 acres that had a contract that had ran out with no wells being drilled. We have 69 more acres in section 6 that is just sitting there . Is the contract for that 69 acres still in effect because of the wells in 31 and 36 or can or should it be released from the contract.
Folks will try to answer your questions about what is held and what isn't, but no one can really tell unless they read the lease and see what is unitized. They will throw terms at you like Pugh Clause, but the wording on those isn't always universal. Someone would have to look at the lease, designations of any units, the state you are in, things like that.