we received our first royalty check from Comstock for the Menn PB-1H pool unit this week. The check stub has a very vague section called “Other Deductions”. I inquired what they were and was given the following answer:
The deducts are as follows-Dehydrations Fees, Compression Fees,Gathering Fees, Transportation Fees, Cost to Market Gas.
My lease agreement states:
Lessor’s royalty shall be calculated free and clear of costs and expenses for exploration, drilling, development and production, including dehydration, storage, compression, separation by mechanical means and product stabilization incurred by Lessee before the point of custody transfer and sale by Lessee. Lessor’s royalty shall bear its proportionate share of ad valorem taxes and production, severance or other excise taxes and the actual costs incurred by Lessee under an arm’s length contract, negotiated in good faith, for the sale of oil or gas produced hereunder, to transport, compress, process, stabilize, gather or treat such production.
MY QUESTION: Do I have a valid complaint that deductions were taken out that shouldn’t be? If so, how do I go about correcting it? If there is a way easier than calling my attorney, I would like to try that route first.
As always THANK YOU for the collective brain trust!!