Hello and here’s wishing everyone a happy and blessed new year!
I have royalties from a recent well operated by BCE-Mach III, LLC (McCully 14/11-18-6) in Kingfisher county, OK along with existing wells operated by Diversified Production, LLC.
My concern is with BCE-Mach taking a small portion off gross proceeds from the Gas and Natural Gas Liquid (bi-products) under ‘processing’, ‘compression’, and ‘plant fuel’. Diversified, along with other previous operators, never took out these expenses.
I’m also locked in production to the original 1950’s lease agreement of only 1/8 royalties.
Are these fees something I should contest to see if they shouldn’t be taken out? I received my first production statement last month, although this will be my first month’s payment after I needed to submit a W-9 to correct the federal tax withholding in which the company voided the first statement and issued a current one for December.
Let me take a moment and also thank all the staff here at mineral forum and pass along my best wishes into the new year!
Mike