I have been approved for free royalty in a lease, except for third-party costs of whom are not affiliated with Lessee in an arms-length transaction. So does that pretty much negate the free royalty? Don’t third parties usually transport, process, and compress?
In Texas, it really depends on the exact language of the lease since Texas tends to default to paying post-production costs (I’m not an attorney though). Are you negotiating a new lease, and are you working with an attorney? I highly recommend talking to an attorney before signing a new lease (in most cases).
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