Texas Supreme Court rules on post-production costs, royalty payments

Producers calculate oil and gas royalties using a relatively straight-forward formula, but litigation can still arise from any of its variables. The royalty payment equals the royalty owner’s net interest multiplied by the total value of production from a well minus the royalty owner’s share of post-production expenses. 


Source: News

Texas Supreme Court rules on post-production costs, royalty payments

Producers calculate oil and gas royalties using a relatively straight-forward formula, but litigation can still arise from any of its variables. The royalty payment equals the royalty owner’s net interest multiplied by the total value of production from a well minus the royalty owner’s share of post-production expenses. 


Source: News