If I’m understanding SB 360 correctly and have a lease held by production at 12.5% that I should be paid a royalty of no less than 12.5% of the proceeds at the first point of sale. Obviously only my portion of the 12.5% Can there still be deductions for getting it to the point of sale? Between deductions and the wholesale price of gas being between 25 and 50% below Henry hub my checks have dropped to nearly nothing. And deductions are another 30% off the gross.
Yes, that is entirely possible. Depending upon your state and the wording of your lease, the post production charges can be very high on gas wells.
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