This form is used to resolve any question as to how royalty is to be paid to the Parties in the event of production, under the Lease, on any part of the Lands. The Parties are entering into this Agreement to stipulate and agree to the ownership of each Party's respective share of the royalty reserved in the Lease payable for production attributable to their Interests from a well located anywhere on the Lands.
The Hawaii Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a legal agreement that outlines the terms and conditions related to the distribution of nonparticipating royalties for oil and gas extraction in Hawaii. This agreement is specifically designed to govern the payment structure for multiple segregated tracts covered by a single lease. Nonparticipating royalties refer to the portion of royalties paid to individuals or entities who own the mineral rights but do not actively participate in the production or operations of the oil and gas lease. This agreement ensures that these nonparticipators receive their fair share of the financial benefits from the lease. Keywords: Hawaii, Agreement, Governing, Payment, Nonparticipating Royalty, Segregated Tracts, Oil and Gas Lease. Different types of the Hawaii Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease include: 1. Basic Agreement: This type of agreement sets out the fundamental provisions regarding the payment of nonparticipating royalties under segregated tracts covered by the oil and gas lease. It establishes the general structure and terms applicable to all parties involved. 2. Tract Specific Agreement: In situations where the segregated tracts covered by the lease have unique characteristics, a tract-specific agreement may be created. This agreement would outline the specific payment terms and conditions for a particular tract, addressing any special factors or considerations. 3. Amendment Agreement: Over time, circumstances may change, necessitating modifications to the original agreement. An amendment agreement is used to make specific alterations or additions to the existing Hawaii Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease. 4. Extension Agreement: When the original agreement's expiration date approaches, the parties involved may decide to extend its validity. An extension agreement outlines the terms and conditions for prolonging the agreement's duration, ensuring continuity in the payment of nonparticipating royalties. 5. Ratification Agreement: In certain cases, discrepancies or errors may be discovered in the original agreement. A ratification agreement serves to rectify these issues by reaffirming the agreement's original terms or providing clarifications. It ensures that any inconsistencies are corrected, thereby validating the agreement. These different types of agreements cater to the specific needs and circumstances of the parties involved, promoting clarity, fairness, and effective governance over the payment of nonparticipating royalties in Hawaii's oil and gas industry.The Hawaii Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a legal agreement that outlines the terms and conditions related to the distribution of nonparticipating royalties for oil and gas extraction in Hawaii. This agreement is specifically designed to govern the payment structure for multiple segregated tracts covered by a single lease. Nonparticipating royalties refer to the portion of royalties paid to individuals or entities who own the mineral rights but do not actively participate in the production or operations of the oil and gas lease. This agreement ensures that these nonparticipators receive their fair share of the financial benefits from the lease. Keywords: Hawaii, Agreement, Governing, Payment, Nonparticipating Royalty, Segregated Tracts, Oil and Gas Lease. Different types of the Hawaii Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease include: 1. Basic Agreement: This type of agreement sets out the fundamental provisions regarding the payment of nonparticipating royalties under segregated tracts covered by the oil and gas lease. It establishes the general structure and terms applicable to all parties involved. 2. Tract Specific Agreement: In situations where the segregated tracts covered by the lease have unique characteristics, a tract-specific agreement may be created. This agreement would outline the specific payment terms and conditions for a particular tract, addressing any special factors or considerations. 3. Amendment Agreement: Over time, circumstances may change, necessitating modifications to the original agreement. An amendment agreement is used to make specific alterations or additions to the existing Hawaii Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease. 4. Extension Agreement: When the original agreement's expiration date approaches, the parties involved may decide to extend its validity. An extension agreement outlines the terms and conditions for prolonging the agreement's duration, ensuring continuity in the payment of nonparticipating royalties. 5. Ratification Agreement: In certain cases, discrepancies or errors may be discovered in the original agreement. A ratification agreement serves to rectify these issues by reaffirming the agreement's original terms or providing clarifications. It ensures that any inconsistencies are corrected, thereby validating the agreement. These different types of agreements cater to the specific needs and circumstances of the parties involved, promoting clarity, fairness, and effective governance over the payment of nonparticipating royalties in Hawaii's oil and gas industry.
