Slash the amount you pay out in royalty with deductions for post-production expenses.
Oil & Gas leases often provide for lessors (landowners) to share certain costs - such as property taxes, severance taxes, power (in some cases), treating, and transportation. Court decisions in many jurisdictions may also permit additional cost-sharing depending on lease language. The Bugle Group offers a free, confidential estimate of how much you can save when lease language and applicable law permit.
Proven outcomes when lease language and applicable law permit
The core idea
Some types of costs from running an oil field should be paid jointly by the Lessee (oil company) and the Lessor (landowner) - when lease language and applicable law permit.
Why operators care
Practical results that matter to owners, finance leaders, and operating teams.
What costs may be legally shared (depends on the lease and law)
The answer typically comes from three sources: (1) lease language, (2) court rulings, and (3) field circumstances.
Downstream / post-production costs
- Dehydration
- Oil treating
- Gas compression
- Gas treating
- Transportation
Taxes and governmental fees
- Property taxes
- Other taxes / governmental fees (where the lease allows)
Electricity (in certain cases)
- Alternate fuel / electricity when lease gas cannot be used as fuel (in certain situations)
A practical, repeatable process
Built to protect confidentiality while connecting lease language to accounting-ready execution.
Confidential intake & lease collection
Secure intake, scope, and confidentiality controls.
Lease language review + deduction eligibility mapping
Clause-by-clause analysis tied to deductible categories.
Court-ruling and field-circumstance alignment
Applicable rulings and field realities considered lease-by-lease.
Implementation support
Accounting-ready deduction number per lease.
Defensibility support
Documentation and complaint-response readiness.
Built for defensibility
Support that keeps royalty deduction programs safe, consistent, and ready for review.
- Customized software matrix for each lease (based on: lease language, court rulings as they apply, and field circumstances).
- Support for royalty-owner complaints with documentation and response readiness.
- Track record stated in materials: zero lawsuits.
- $1,000,000 bond with Lloyd's of London
- Retained attorney to help respond to complaints
- Client indemnification (per engagement terms)
How much can you save?
Savings depend on what the leases say, on how much cleaning the oil requires, and other variables.
Stated experience indicates savings have often ranged from 10% to 20% of the total royalty bill, when lease language and applicable law permit.
- Lease-by-lease deduction numbers ready for accounting.
- Clear documentation for internal review or audits.
- Operator-friendly implementation with minimal disruption.
Other services
The Bugle Group also offers:
Get a free, confidential estimate
Call or send a message to request more information, references, or a free audit of your leases under confidentiality.