Just agreed on lease terms for mineral in Secs. 1 and 11, Block 44, Twp. 3 So. Terms are $550/acre bonus, 25% royalty, no post production costs. Wish us luck.
Jim
Break a Leg, JR!
What County?
Hope it wasn't to Chesapeake.
Sorry- Ector Co.
How are you making sure that the lease will have no post-production costs deducted? Are you relying on a lease generated by an oil company without having an oil and gas attorney protect your interests?
Texas Post-Production Costs Still Constrained By 4 Corners
"In short, the law on deductibility of post-production costs in calculating royalties under Texas oil and gas leases remains unchanged by the Texas Supreme Court’s decision in Hyder. The holding of Heritage is still intact and cannot be avoided by the disclaimers of its holding contained in many recent leases. Deductibility of post-production costs has been and still is governed by a fair reading of the particular royalty lease language."
We have a specific condition in an addendum to the Producers 88 lease generated by the lessee. I'm hoping a) we have royalties to fight about, and b) that it does the job. So far in other leases the clause we used has done the job.
Great. In case this was your first rodeo, I wanted you to be aware. I hope you enjoy other protections from the Producers lease.
My Bad. That was the Subject Matter in your original Posting...