No Deduction

I’ve been approached to lease my minerals in Dewey County with the upfront statement that this company will not accept any “No Deduction Clause”. It was stated that we do not take deductions other than taxes. What happens at a later date if lease is acquired by another company that does take deductions?

@G_Brown, producing oil and gas wells acquired by another company are subject to all properly executed, filed and recorded mineral leases taken by the previous producer and/or marketer of the said well’s production. Make sure the lease you execute is signed and notarized then filed and recorded in the county where our mineral records are recorded at that County’s Court house on book and page. Get a copy of the filed and recorded lease for your own records. I always add “no deduction for processing” into my no deduction clause along with the other no deductions listed.

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Thanks Martha. Sounds like good advice.

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