What could possibly justify a company taking 60-85% of a royalty payment for gathering on a gas well?
Most operators sign gathering or transportation contracts at $0.xx per mcf. I see some at $0.75. The charge does not fluctuate with gas prices, so as gas prices fall, the percentage of costs rises and as gas prices rise, the cost percentage falls. In West Texas, where prices are so low (and recently negative), the costs have exceeded the gas revenues. Your pricing in OK will be different. It depends on whether your lease terms allow the deduction of costs and if so, then are the types of costs limited?