Royalty Deductions Guidelines
PrairieSky has many lease forms, and these guidelines for the calculation of deductions are applicable to most lease forms that permit deductions. In the event of a conflict between these guidelines and the lease, the specific terms of the lease shall prevail.
Royalty Deductions Guidelines (*upated November 2019)
Note: To the extent that an overriding royalty is payable to PrairieSky subject to deductions based on actual costs, PrairieSky will also accept deductions under any such overriding royalty agreement to be determined in accordance with these guidelines; in which case, any reference to the lessee and the lease in these guidelines shall mean the payor and that overriding royalty agreement.