# Royalties and deductions
**URL:** https://www.mineralrightsforum.com/t/royalties-and-deductions/19361
**Category:** Washington County, PA
**Created:** [December 6, 2012, 4:15pm UTC](https://www.mineralrightsforum.com/t/royalties-and-deductions/19361 "2012-12-06T16:15:38Z")
**Posts on this page:** 4
**Page:** 1
### Author:  [@velva\_mooney](https://www.mineralrightsforum.com/u/velva_mooney)
#### Post date: [December 6, 2012, 4:15pm UTC](https://www.mineralrightsforum.com/t/royalties-and-deductions/19361/1 "2012-12-06T16:15:38Z")
Is it the norm to pay post-production costs and also is your percentage figured on the net or the gross? As you may have noticed I am new to this and need all the info I can get.
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### Author:  [@Gerry\_Bell](https://www.mineralrightsforum.com/u/Gerry_Bell)
#### Post date: [December 6, 2012, 4:30pm UTC](https://www.mineralrightsforum.com/t/royalties-and-deductions/19361/2 "2012-12-06T16:30:48Z")
I don’t know if it’s the norm, but most Range and Chesapeake leases I’ve seen say that no deductions are to be taken from the royalty, except those which end up increasing the value. Which ends up being a bunch. I’ve heard $1 to $1.50 processing & transportation, then your royalty is figured on whatever’s left.
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### Author:  [@r\_w\_kennedy](https://www.mineralrightsforum.com/u/r_w_kennedy)
#### Post date: [December 6, 2012, 4:54pm UTC](https://www.mineralrightsforum.com/t/royalties-and-deductions/19361/3 "2012-12-06T16:54:23Z")
You would also want to be paid on the value of a first arms length transaction. If Chesapeake sells your gas to an affiliate for $1.75 and takes out $1.50 in deductions for processing and transport and then the state takes production and severance taxes, you make pennies.
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### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [August 15, 2018, 3:07am UTC](https://www.mineralrightsforum.com/t/royalties-and-deductions/19361/4 "2018-08-15T03:07:37Z")