0 – 15 Minutes
Doug discusses his landowner representation and begins breaking down royalty Addendum asserting no deductions for post-production costs. Doug starts walking landowners through the sample Addendum provision to begin to explain questions and concerns regarding natural gas royalties and deductions and gas companies loop holes.
15 – 30 Minutes
Discussion continues regarding no royalty deduction clause in gas lease Addendum. Breaking down sample no deduction royalty clause to explain loop holes, confusion, and how companies may interpret language differently. What is “generally recognized and accepted by the industry as value-added enhancements”? Do we know?
30 – 45 Minutes
Breaking down specific no deduction royalty language, explanation of loop hole and how to negotiate no deduction clauses with loop holes and seeking clarification for gas company interpretation of complex royalty language. Guidance on the process of landowner negotiation and evaluation of total lease offer and uncertain no deduction royalty clause language. What should your oil and gas attorney do and what should you be thinking about?
45 – 60 Minutes
Discussion regarding gas companies offering no deduction royalty Addendum drafted by their experienced lawyers. Remember, these terms are drafted by the company. Many times companies have drafted these provisions with loop holes to allow companies to avoid paying landowner royalties on legitimate third party marketplace transactions without any post-production cost deductions. Landowners must understand whether they can identify “enhancements” vs post-production costs.
