Should a Lessor have any type of expenses when it comes to production?
Sonia, you have to read the clauses in your lease. You have to have what is underlined below in your own lease to escape deductions.
"In consideration of the rights granted to Lessee, Lessee agrees to deliver to Lessor at the sales point, .......% of all oil, gas and other related hydrocarbons produced from the leased premises, furthermore each and all of the royalties due and payable to Lessor shall be computed without deduction or charge for any cost or expense whatsoever for production, sales, delivery, processing, or any other purpose, except that Lessor’s royalty shall bear any severance, ad valorem or windfall profits taxes attributable to them."