# Post-Production Costs: The Deductions on Your Royalty Check
> **Breadcrumb:** Home › Oil & Gas Encyclopedia › Post-Production Costs

> Post-production costs are the gathering, processing, compression, and transportation charges netted from many royalty checks after the wellhead. Here is what they are and how lease language decides whether you pay them.

**URL:** https://www.buckheadenergy.com/post-production-costs
**Source:** Buckhead Energy (https://www.buckheadenergy.com/)
**Generated:** 2026-08-20 (heuristic; server-side extraction)

## Answer
Post-production costs are the expenses of making oil and gas marketable after it leaves the wellhead — gathering, compression, processing, dehydration, and transportation — that are deducted from many royalty payments depending on the lease language. Frequently asked questions What are post-production costs? The costs of making oil and gas marketable after the wellhead — gathering, compression, dehydration, processing, and transportation. Depending on the lease, some or all of these can be deducted from a royalty owner's share. Can post-production costs be deducted from my royalty? It depends on your lease. "At the well" language generally allows proportional deductions; "marketable product" or gross-proceeds language and explicit cost-free royalty clauses limit or bar them. States interpret this language differently. Why is my net royalty lower than the gross? The gap is usually post-production deductions plus severance tax. On your check stub, the difference between the gross value and your net shows how much is being taken for gathering, processing, compression, and transport. Does Buckhead Energy buy mineral and royalty interests? Yes — Buckhead Energy is a direct buyer of mineral, royalty, NPRI, and ORRI interests across the United States, producing or non-producing. Buckhead Energy makes a free written offer, pays the title and closing costs, and charges no broker commission.

## Page Outline
- Post-Production Costs (Royalty Deductions)
  - What happens after the wellhead
  - How the lease decides who pays
  - Why it matters when you value or sell
  - Related reading
  - Frequently asked questions
  - Ready to Sell Your Mineral Rights?

## Related Pages
- [Oil & gas royalties](https://www.buckheadenergy.com/oil-and-gas-royalties)
- [How to read your royalty statement](https://www.buckheadenergy.com/reading-royalty-statement)
- [Why is my royalty check going down?](https://www.buckheadenergy.com/why-is-my-royalty-check-going-down)

## About Buckhead Energy
Buckhead Energy is a direct buyer of oil & gas mineral rights and royalty interests across 33 U.S. states. We provide free written offers within 24-48 hours, with closings in 30-45 days. Family-owned and operated since 2007, A+ BBB rated.

**Sell mineral rights:** https://www.buckheadenergy.com/sell
**Operator directory:** https://www.buckheadenergy.com/operators