I have been approved for free royalty in a lease, except for 3rd 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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