Currently our oil company is taking over half our check. 3700 p/m before deducting and 1500 after. Can they take basically anything they want?
You need to read your lease and see if you gave them that ability. Some states allow post production charges and others do not unless the lease specifically grants them. If you post your question in the state and county, you might get a more accurate answer.
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Thanks. In looking at the lease it appears the company is allowed to charge deductions but also appears to say (and Iām no lawyer) at a rate of 12.5%. The are charging over 50%.
The 12.5 % is probably your royalty. In some areas, I have heard the post production charges being 200% for gas, so the royalty owners received no royalties.
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