0 – 15 Minutes
Royalty issues. Doug discusses extensions and modifications with regards to oil and gas leases. Extensions and modifications may or may not be right for you. How do you know if this situation is right for you? Extensive discussion on how to consider extension and modifications in your leasing situation.
15 – 30 Minutes
Royalty discussion continued. Be wary of a company’s “kindness”. Discussion on how well bores under your parcel, or planned to be drilled under your property can affect your gas lease. Lease amendment, modification and extension discussion continued. Do not let yourself make a detrimental mistake. Gain a deeper understanding of the motives of the gas companies. Seek legal representation from an oil and gas lawyer who understand these issues in a deeper way.
30 – 45 Minutes
Doug discussed and explanations on natural gas royalty deductions. Royalty deductions explained using example monthly royalty statement payments. Discussion to illustrate to the landowner that royalty issues are complicated and require assistance because most landmen and landowners do not have a full understanding of these complicated gas royalty payment issues. Protection must come in black and white in your oil and gas lease, not from the mouth of the gas company landman.
45 – 60 Minutes
Continued discussion on gas royalties. Form oil and gas leases allow for post-production costs or deductions from royalty payments. There may gas lease language that includes no post-production royalty deduction clauses though this language does not guarantee deductions will not be taken. Form gas leases offered by the gas company will almost always offer only the wellhead price and will allow deductions for post-production costs. Be careful of key phrases such as “wellhead price” and “revenue realized” which typically indicate deductions will be taken