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.
Illinois Taking or Marketing Royalty Oil and Gas in Kind refers to the practice of the state of Illinois taking ownership of a portion of oil and gas production as a form of royalty payment for the use of public lands or resources. This arrangement allows the state to receive its share of the revenue directly in the form of oil and gas, rather than cash payments. Taking or marketing royalty in kind is a common practice in the oil and gas industry, where the state or government entity collects its royalty share by selling the produced hydrocarbons in the open market. The proceeds obtained from the sale of these resources are then utilized for various public purposes, such as funding schools, infrastructure development, and conservation efforts. There are several types of Illinois Taking or Marketing Royalty Oil and Gas in Kind programs based on different factors. Some of them include: 1. State Lands Royalty Program: This program applies to oil and gas produced from state-owned lands in Illinois. The state takes its share of the resource production as royalty payment and markets it to generate revenue. 2. Federal Lands Royalty Program: When oil and gas are extracted from federally owned lands within Illinois, the federal government may adopt a similar approach, taking the royalty in kind, and marketing it accordingly. 3. Public-Private Partnership Program: In certain cases, public-private partnership programs are established, where private companies work with the state to produce oil and gas from public lands. The state takes a portion of the production in kind as a royalty, which is then marketed. 4. Local Government Royalty Program: Some local governments in Illinois also have agreements with private companies for the extraction of oil and gas from their lands. As part of the agreement, the local government may take oil and gas in kind as a royalty payment, which they can market to generate revenue for local development. These various types of Illinois Taking or Marketing Royalty Oil and Gas in Kind programs aim to ensure that the state and its citizens receive fair compensation for the use of public resources. By taking a share of the oil and gas production directly, the state can monetize these resources effectively and contribute to the economic growth and development of Illinois.
