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.
The District of Columbia Taking or Marketing Royalty Oil and Gas in Kind (ACTOR) program is a government initiative aimed at managing and optimizing the revenue generated from oil and gas production within the district. A detailed description of the program and its various types is provided below. The District of Columbia Taking or Marketing Royalty Oil and Gas in Kind program is designed to ensure efficient management and monetization of oil and gas resources within the district. This initiative is under the jurisdiction of the District of Columbia's government, specifically the Department of Energy and Environment (DOES), working in collaboration with the Department of Natural Resources (DNR). Oil and gas companies operating within the district are legally obliged to pay royalties to the government for the extraction and production of these natural resources. Instead of receiving monetary payments, the government, through the ACTOR program, takes the royalties in the form of oil and gas products. The government then markets and sells these resources to maximize revenue for the citizens of the District of Columbia. The ACTOR program offers several types of royalty oil and gas in kind arrangements. These can include: 1. Crude Oil: Under this arrangement, oil companies operating within the district provide a percentage of their crude oil production to the government as royalty payment. The government then takes ownership of this oil and handles its marketing, distribution, and sales. 2. Natural Gas: Similar to the crude oil arrangement, natural gas producers within the district provide a portion of their production to the government. The DOES then manage the marketing, sale, and distribution of the gas to various buyers. 3. Liquefied Natural Gas (LNG): The ACTOR program also allows for the taking of royalty payments as LNG. LNG is natural gas that has been converted into its liquid form, making it easier to store and transport. The government handles the liquefaction process, storage, and marketing of LNG to maximize revenue generation. The District of Columbia, through its Taking or Marketing Royalty Oil and Gas in Kind program, ensures that oil and gas resources are effectively managed and monetized for the benefit of its residents. The program offers various options for royalty payments, including crude oil, natural gas, and LNG, allowing for flexibility based on the resources being extracted and market demands. By taking and marketing royalties in kind, the district can optimize revenue and align its energy policies with sustainable resource management practices.
