Deductions from oil royalty payments

I’m going over payment stubs and noticed deductions for these 3 things:

  1. Oklahoma Excise Tax, 2) Oklahoma Energy Resources Revolving Fund, and 3) Oklahoma Production Tax. My lease says no deductions with some examples but I’m assuming these 3 are not covered by our “no deductions clause” and are appropriate. Am I correct?

Correct. Those are state taxes, not Post Production Costs.

I think maybe some of my questions have ben answered.

I forgot to mention the marginal tax that was deducted. Is that a state tax?

If you don’t live in OK you get the taxes paid back when filing your income tax, right?

One more question. What are plant products?

All royalty owner addresses outside Ok are subject the the OK income tax withholding and there will be reductions on every royalty check. When I last checked an OK non-resident income tax return is required the the royalties hit $1,000. Naturally if there is other OK source income a return is probably necessary. If the gross royalties are under $1,000 no return may be necessary plus you have saved the tax prep cost.

Over years I have seldom, if ever, received a 100% refund.

Plant products are the liquids that are extracted from the gas stream and sold separately than the pure methane. They are ethane, propane, and both butanes, etc. They are usually sold by the gallon and have different prices according to their value.