# Deductions from royalty payments

**URL:** https://www.mineralrightsforum.com/t/deductions-from-royalty-payments/41695
**Category:** Caddo County, OK
**Created:** [February 14, 2019, 5:51pm UTC](https://www.mineralrightsforum.com/t/deductions-from-royalty-payments/41695 "2019-02-14T17:51:10Z")
**Posts on this page:** 6
**Page:** 1

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### Author: ![Steve\_Hunt](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/steve_hunt/32/3909_2.png) [@Steve\_Hunt](https://www.mineralrightsforum.com/u/Steve_Hunt)
#### Post date: [February 14, 2019, 5:51pm UTC](https://www.mineralrightsforum.com/t/deductions-from-royalty-payments/41695/1 "2019-02-14T17:51:10Z")

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Chesapeake has changed the format of their royalty statements and now there is an easier to read breakdown of deductions. I notice that for us, there are deductions for “Transportation” and for “Fuel Mainline.” I have read on some legal websites that OK law prevents deductions but I also know that the lease language plays a role. How can I determine if my leases allow these deductions or not? They are fairly old.

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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: [February 14, 2019, 8:07pm UTC](https://www.mineralrightsforum.com/t/deductions-from-royalty-payments/41695/2 "2019-02-14T20:07:38Z")

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Theoretically, if your old lease says gross proceeds, then you shouldn’t have deductions. That being said, companies seem to try all sorts of ways to get around that.

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### Author: ![Richard\_Winblad](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/richard_winblad/32/11511_2.png) [@Richard\_Winblad](https://www.mineralrightsforum.com/u/Richard_Winblad)
#### Post date: [February 14, 2019, 8:15pm UTC](https://www.mineralrightsforum.com/t/deductions-from-royalty-payments/41695/3 "2019-02-14T20:15:50Z")

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Steve, would need to review lease and the deductions. Some companies have a history of hiding the ball with deductions. Currently in litigation with Chesapeake on a similar issue.

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### Author: ![Steve\_Hunt](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/steve_hunt/32/3909_2.png) [@Steve\_Hunt](https://www.mineralrightsforum.com/u/Steve_Hunt)
#### Post date: [February 15, 2019, 6:59pm UTC](https://www.mineralrightsforum.com/t/deductions-from-royalty-payments/41695/4 "2019-02-15T18:59:50Z")

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I know I will have to take this to my attorney, but I wonder if any of you sharpshooters can tell from this clip of the germane portion of the 1977 lease if I even have a chance to challenge deductions.

 ![lease extract 1977](https://www.mineralrightsforum.com/uploads/db5755/original/2X/9/98cae781572b293eb53e61e505483c0563aba59c.jpeg)

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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: [February 15, 2019, 10:55pm UTC](https://www.mineralrightsforum.com/t/deductions-from-royalty-payments/41695/5 "2019-02-15T22:55:54Z")

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Generally speaking that is a gross proceeds lease and they usually don’t have post production charges. Depends upon the operator. Take it to the attorney.

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### Author: ![MRFAdmin\_SV](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/m/e0b2c6/32.png) [@MRFAdmin\_SV](https://www.mineralrightsforum.com/u/MRFAdmin_SV)
#### Post date: [January 11, 2025, 6:18pm UTC](https://www.mineralrightsforum.com/t/deductions-from-royalty-payments/41695/6 "2025-01-11T18:18:51Z")

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