How will proposed
Force Pooling Legislation
will effect YOU!
We are having multiple meetings around the state to hear your questions and or concerns, as well as to explain exactly what is in the proposed bill. Make sure to mark your calendars!
All Meetings Start at 6:00 p.m.
Pleasants County Training Center 512 Triplett St Belmont
Morgantown Moose 1993 Little Indian Creek Rd Morgantown
Charleston Moose 2805 Kanawha Blvd East Charleston
Upshur County Moose 25 N. Kanawha St. Buckhannon
Marshall Co. American Legion 41 ½ Main St. Cameron
Wood Moose Lodge 1607 Dupont Rd. Parkersburg
Fairmont Middletown Mall 101 Tygert Loop Fairmont
Glenville Inn 61 Development Dr. Glenville
Hancock VFW 208 North Chester St New Cumberland
For more information contact us at
Last Updated (Monday, 20 July 2015 18:22)
What Post Production Deductions will Do to YOU
How Post Production Deductions Affect Your Royalty Check
We advocate a cost free royalty clause whenever someone asks about a lease, so the question is what really are “Post Production Costs”? Here is a list of some of the deductions we recently saw on a royalty check:
Compression Fee (3 different types)
Marcellus Cone Gathering System Charges
Marcellus Flat Fee Production ($1.20)
Marcellus Post Production Cost (3 different types)
Plant Processing Fee (2 different types)
Transportation (2 different types)
This is how much a simple 12.5% royalty would be impacted by allowing for post-production costs.
This Royalty Owner would lose $1,274.53 a MONTH! Over HALF of what they should have gotten.
Leasing Clauses to Look for
Top Leasing Clauses to Include or Remove!
1. Specific Depth Reservation
· Lease only the Marcellus, or only the shallow formations; never lease the surface to center of the earth.
2. Lease only Your Tract
· Avoid language that includes words such as adjacent, or contiguous; it can allow them to hold your tract even though there is no production.
3. Your Royalty Payments are Deduction Free
· Deductions or post production expenses on royalty payments can reduce a 12.5% lease to under 6%.
4. Avoid Enhancement Clauses
· Enhancement clauses have been used against royalty owner’s under the guise of ‘The gas is not marketable at the well head, so transportation is an enhancement’; even if your lease says deduction free.
5. Pugh Clause
· If a portion of your acreage is not included in a unit, the non-developed acreage is released, allowing for another company to potentially develop it.
6. Warranty of Title
· Do not give any warranty on your title, in most cases you haven’t done title and they have approached you wanting to lease.
7. Limit on Shut in Payments
· Put a time limit for how long a shut in payment can hold your lease in full effect.
8. ALWAYS Consult a Lawyer
· These are a few things to watch for and should not be considered legal advice, find a good oil and gas lawyer that will be able to assist in the leasing process.