Nancy, Thank you for bringing this to the Forum. Most who have been following the attempts by the Oil and Gas companies to subtract every penny possible prior to the payment of royalties thought that this had been settled by the Tawney v. Columbia ruling. Appears we were wrong. My understanding of that ruling is that they can extract only costs that are clearly identified in the language of the lease. The reason she gave you defies common sense. The laws of Pennsylvania do not apply to other states. I would have to think that either they are hoping royalty owners will just except their explanation, or that they want to open the subject again and hope for a different ruling. It may be time for us royalty owners to organize. The Surface Owners have an Organization dedicated to looking out for their interests, I think we need the same. A group would be able to provide more funds to hire legal advice and representation. Plus, it would also bring subjects like this to the attention of a larger group who would possibly be affected. I know that I would be willing to kick in some money to help fight actions such as this one. I would also suggest that all royalty owners get access to the book, “Oil and Gas Law” in a nut shell, 5th edition. By John S. Lowe. It is part of the “in a nutshell series”. It will not take the place of hiring a lawyer, but it can give you a better idea of when you should hire one. Published by Thomson Reuters, 610 Opperman Drive, St. Paul, MN 55123 Hope Kyle Nuttall will jump in here.