What's the downside for not signing a lease?

Thanks for the lead to Title 52 — found the following…

§52-570.12. Information to be included with payments to interest owner - Calculation of revenue decimals - Measurement of gas volume reported – Electronic dissemination. A. The following information for each property and month of sale shall be included with each payment made to an interest owner from the sale of oil or gas: 1. Lease or well identification; Oklahoma Statutes - Title 52. Oil and Gas Page 238 2. Month and year of sales included in the payment; 3. Total barrels or MCF attributed to such payment; 4. Price per barrel or MCF, including British Thermal Unit adjustment of gas sold; 5. Total amount attributed to such payment of severance and other production taxes, with the exception of windfall profit tax; 6. Net value of total sales attributed to such payment after taxes are deducted; 7. Owner’s interest, expressed as a decimal, in production from the property; 8. Owner’s share of the total value of sales attributed to such payment prior to any deductions; 9. Owner’s share of the sales value attributed to such payment less owner’s share of the production and severance taxes; and 10. A specific listing of the amount and purpose of any other deductions from the proceeds attributed to such payment due to the owner upon request by the owner.

The last item seems to allow deductions from proceeds…

So, under pooling it seems we are in the same shape that we are when using a lease – if we don’t rule out deductions they will allow them. Except in Pooling the only option seems to be at the Pooling hearing; and I am not sure they would entertain such a suggestion.

So, it appears a Exhibit on a lease may be the best method to stipulate Deductions allowable from Royalty. Any thoughts???

Any thoughts?

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