How to Make Deductions From the Royalty Stream for Post-Production Expenses

Most private Oil & Gas Leases have language that requires royalty owners to pay their proportionate share of taxes, regulatory fees and the expenses to treat: - crude oil; - natural gas; - gas liquids, as well as expenses to market those products. Some leases require royalty owners to pay their share of electricity bills, if the Lessee is required to use electric motors rather than internal combustion engines for power. Most appellate courts have said those requirements are valid.