Royalty Drains

They’re drilling your land—and draining your royalties. Oil companies have quietly turned lease loopholes into profit machines.

The fine print can cost landowners millions. Because it’s not just what your lease says. It’s what it doesn’t say.

Here are 5 ways lease terms may reduce your royalty check—and how to shut them down before it’s too late:

Post-production costs

Hidden deductions can cut royalties by 40%.

"Marketable condition" clauses

Without this, you eat the pipeline prep bill.

Washout provisions

They assign your royalty to someone else—without your consent.

Held-by-operations

A shut-in well 1,000 feet away can block your bonus forever.

Pooling without consent

You could be “pooled” into a bad deal with no upside.

Every one of these can be fixed.

But not after the ink is dry.

Don’t sign another lease without fighting these.

Better yet, get an attorney who’s fought them in court.