What could possibly justify a company taking 60-85% of a royalty payment for gathering on a gas well?
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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?
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Realize your lease agreement with the operator or oil company that you sign the contract with towards the back there should be a no deductions clause or either a cost-free clause if you have both or one of those in your contract lease agreement you signed there’s a very good chance that they are taking illegal post-production costs that’s my opinion but if that’s the case you are within your full rights to recover the funds that were legally taken from your royalty Revenue look at look into the prsa ACT it protects royalty owners from these specific types of incidents as well as allows them a 12% annual compound and statutory interest rate on all late or past due funds
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