# Lease Offer w/ Transportation & Marketing Costs Clause
**URL:** https://www.mineralrightsforum.com/t/lease-offer-w-transportation-marketing-costs-clause/89794
**Category:** Oil and Gas Leasing Help
**Created:** [October 22, 2026, 5:19pm UTC](https://www.mineralrightsforum.com/t/lease-offer-w-transportation-marketing-costs-clause/89794 "2026-10-22T17:19:22Z")
**Posts on this page:** 4
**Page:** 1
### Author:  [@Arthur\_Reinauer](https://www.mineralrightsforum.com/u/Arthur_Reinauer)
#### Post date: [October 22, 2026, 5:19pm UTC](https://www.mineralrightsforum.com/t/lease-offer-w-transportation-marketing-costs-clause/89794/1 "2026-10-22T17:19:22Z")
I received two Mineral Lease Offers for Caddo County this Summer both of which included a Clause that the Production Revenue would be paid after deductions for Transporting the Oil/Gas and the Marketing Costs. I asked that the Clause be removed and that the Revenue be based on the Production “at the well head” as this had been typical in previous Leases, but the Leasing Agent would not remove it. I did not agree to the Lease Offer with the Clause and the Lease Offer was withdrawn. Is this Clause typical of today’s Leases or is this abnormal?
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### Author:  [@AimeeHess](https://www.mineralrightsforum.com/u/AimeeHess)
#### Post date: [October 22, 2026, 5:50pm UTC](https://www.mineralrightsforum.com/t/lease-offer-w-transportation-marketing-costs-clause/89794/2 "2026-10-22T17:50:36Z")
It is typical for oil companies to want to deduct costs from royalties, although it’s important to ask for cost free royalties. Some companies will agree. However, be aware that the phrase “at the wellhead” allows costs to be deducted.
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [October 22, 2026, 6:05pm UTC](https://www.mineralrightsforum.com/t/lease-offer-w-transportation-marketing-costs-clause/89794/3 "2026-10-22T18:05:53Z")
The “at the wellhead” in OK means something different than “at the wellhead” in TX which does include post production charges.
OK is an “implied covenent to market state” which means the operator has to get your product to market without charging the post production charges (unlike Texas). UNLESS, the lease terms allow the charges-which almost every operator will try to put back into the lease. You will have to lobby hard with the operator to get them to take it off. If you lease with a third party working interest owner, they will often take off the post production charges. Most forced pooling in OK that I have had were gross production with no charges.
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### Author:  [@LME](https://www.mineralrightsforum.com/u/LME)
#### Post date: [October 22, 2026, 7:11pm UTC](https://www.mineralrightsforum.com/t/lease-offer-w-transportation-marketing-costs-clause/89794/4 "2026-10-22T19:11:59Z")
Some oil companies demand it, others don’t. The lease is negotiable, and “transportation” is one field of concerns and “marketing costs” is another. You may want to see if you can negotiate caps if they will not agree to waive the costs. Practically, it is difficult to identify either cost and then determine whether the company providing transportation or marketing services is affiliated with the operator.