I receive royalties from about 12 companies and there is 1 company that is deducting 48% from the royalties. I questioned this and was told this
"I looked at your distribution history and see that yes, the deductions as compared to the revenue are high. This is due to the fall in oil and gas and gas liquids falling so much over the last couple of years. When Pioneer had these properties the oil and liquids price were more than double what we are getting now. The deduction for gas processing does not go down as the price goes down and therefore the deduction becomes a greater percentage of revenue. These are all costs that are charged by the purchaser of our gas and not something that we as an operator retain."
As mentioned, I all my other companies deduct between 10% and 28%.
Can someone tell me what entity would regulate this situation? I think this is somewhat fishy and would like it reviewed by a higher authority.
Thanks for any info!