Specifications include, but are not limited to: . Lessee covenants and agrees to pay royalty to Lessor as follows: (a) On oil, to deliver to the credit of Lessor, free of cost in the pipeline to which Lessee may connect wells on the Premises, the equal three sixteenth (3/16) part of all oil produced and saved from the Premises. (b) On gas of whatsoever nature or kind, including coalbed gas and other gases, liquid hydrocarbons and their respective constituent elements, casing head gas or other gaseous substances, produced from the Premises (“Gas”) Lessee shall pay, as royalty, three-sixteenth (3/16) of the net proceeds realized by Lessee from the sale thereof; provided, that the net proceeds shall be after deduction for costs subsequent to the production of the Gas, including, without limitation, costs (including fuel use) related to gathering, transporting, dehydrating, compressing, processing, marketing and treating the Gas.