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.
Idaho Shut-In Gas Royalty refers to the royalty payments received by landowners or mineral rights owners in the state of Idaho when gas production is temporarily shut down due to various reasons. These royalties serve as compensation for the potential loss of revenue during the period when gas operations are halted. Shut-in gas royalty can occur for different reasons, and some types of Idaho Shut-In Gas Royalty include: 1. Economic Shutdown: Economic factors such as low gas prices or oversupply in the market may lead to the temporary shut-in of gas wells. Landowners in Idaho may receive shut-in gas royalties during these times. 2. Equipment Maintenance: Shutting down gas production temporarily for equipment maintenance, repairs, or upgrades is another situation that can trigger the payment of shut-in gas royalties in Idaho. 3. Regulatory Compliance: Compliance with environmental regulations or obtaining necessary permits could involve shutting down gas operations temporarily, resulting in the payment of shut-in royalties to affected landowners. 4. Natural Disasters: Natural disasters like earthquakes or severe weather conditions may require the temporary shut-in of gas wells in Idaho for safety reasons. Shut-in gas royalties are typically paid during these periods. 5. Pipeline Constraints: In some cases, shut-in gas royalties may be paid when gas production exceeds pipeline capacity, leading to a temporary halt until additional infrastructure is in place. Shut-in gas royalty payments are based on the terms outlined in lease agreements between landowners and gas companies. These agreements typically specify the percentage of royalties the landowner will receive during the shut-in period, which is usually lower than the regular production royalties. Landowners and mineral rights owners in Idaho play a crucial role in ensuring consistent and responsible gas production. The payment of shut-in gas royalties serves to protect their financial interests during temporary production shutdowns while helping to maintain a reliable and sustainable energy industry in the state.
