Arkansas Shut-In Gas Royalty

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Multi-State
Control #:
US-OG-824
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Description

This lease rider form may be used when you are involved in a lease transaction, and have made the decision to utilize the form of Oil and Gas Lease presented to you by the Lessee, and you want to include additional provisions to that Lease form to address specific concerns you may have, or place limitations on the rights granted the Lessee in the standard lease form.

Arkansas Shut-In Gas Royalty refers to a type of royalty payment received by individuals or entities for natural gas that is not produced or sold due to various reasons. When gas wells are shut-in or temporarily taken out of production, primarily due to low natural gas prices, infrastructure constraints, or market conditions, landowners still retain the right to receive royalties for the gas that was not extracted or sold. The shut-in gas royalties in Arkansas are governed by state regulations and leasing agreements between landowners and energy companies. These royalties are a way for landowners to receive payment for the gas that remains underground, despite not being actively extracted. Keywords: Arkansas, Shut-In Gas Royalty, royalty payment, natural gas, production, sold, shut-in, landowners, leasing agreements, energy companies, regulations, underground. Common types of Arkansas Shut-In Gas Royalty include: 1. Shut-In Royalty: This refers to the standard shut-in royalty payment received when natural gas wells are temporarily shut down or taken out of production due to market conditions or other factors. 2. Economic Shut-In Royalty: This type of royalty is received when a well is shut down because extracting and selling the gas does not yield economically viable returns. It may occur due to low market prices, high operational costs, or extensive infrastructure requirements. 3. Physical Shut-In Royalty: This royalty is paid when production is halted due to physical constraints such as mechanical problems, equipment maintenance, or due to lack of available infrastructure. 4. Regulation-Enforced Shut-In Royalty: In some cases, government regulations or environmental stipulations may force the shut-in of gas wells. This royalty compensates landowners for the gas that cannot be produced due to such constraints. Additional Keywords: Economic viability, returns, market prices, operational costs, infrastructure, mechanical problems, equipment maintenance, environmental stipulations, government regulations.

Arkansas Shut-In Gas Royalty refers to a type of royalty payment received by individuals or entities for natural gas that is not produced or sold due to various reasons. When gas wells are shut-in or temporarily taken out of production, primarily due to low natural gas prices, infrastructure constraints, or market conditions, landowners still retain the right to receive royalties for the gas that was not extracted or sold. The shut-in gas royalties in Arkansas are governed by state regulations and leasing agreements between landowners and energy companies. These royalties are a way for landowners to receive payment for the gas that remains underground, despite not being actively extracted. Keywords: Arkansas, Shut-In Gas Royalty, royalty payment, natural gas, production, sold, shut-in, landowners, leasing agreements, energy companies, regulations, underground. Common types of Arkansas Shut-In Gas Royalty include: 1. Shut-In Royalty: This refers to the standard shut-in royalty payment received when natural gas wells are temporarily shut down or taken out of production due to market conditions or other factors. 2. Economic Shut-In Royalty: This type of royalty is received when a well is shut down because extracting and selling the gas does not yield economically viable returns. It may occur due to low market prices, high operational costs, or extensive infrastructure requirements. 3. Physical Shut-In Royalty: This royalty is paid when production is halted due to physical constraints such as mechanical problems, equipment maintenance, or due to lack of available infrastructure. 4. Regulation-Enforced Shut-In Royalty: In some cases, government regulations or environmental stipulations may force the shut-in of gas wells. This royalty compensates landowners for the gas that cannot be produced due to such constraints. Additional Keywords: Economic viability, returns, market prices, operational costs, infrastructure, mechanical problems, equipment maintenance, environmental stipulations, government regulations.

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Arkansas Shut-In Gas Royalty