Kansas Stipulation Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-622
• Format: Word; Rich Text

Description

This form is used when the parties own nonparticipating royalty interests in various tracts of land. The Lease covers all of the lands owned by the parties. 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 Stipulation to stipulate and agree to the ownership of each party's respective share of the royalty reserved in the lease. The Kansas Stipulation Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a legal agreement specific to the state of Kansas that addresses the payment of nonparticipating royalties for oil and gas leases. This stipulation applies when multiple tracts of land are covered by a single lease, and these tracts are segregated or divided for individual ownership purposes. The purpose of this stipulation is to ensure fair and equitable payment of nonparticipating royalties to all individual owners of the segregated tracts, considering their respective share of mineral rights and lease agreements. By implementing this stipulation, the interests and rights of both lessors and lessees are protected, preventing any potential disputes or discrepancies. Under this stipulation, there can be different types of arrangements depending on the specific circumstances and needs of the parties involved. Some variations and possible scenarios that may arise include: 1. Segregated Tracts by Surface Location: In cases where the segregated tracts are physically divided by their surface location or boundary lines, the stipulation defines the calculation and distribution of nonparticipating royalties based on the proportional acreage of each tract. 2. Segregated Tracts by Mineral Ownership: If the segregated tracts have different owners of the mineral rights, the stipulation considers the percentage ownership of each party. Nonparticipating royalty payments are then distributed accordingly, taking into account the varying levels of ownership interest. 3. Segregated Tracts by Depth or Formation: When the segregated tracts are divided based on specific depths or geological formations, the stipulation outlines how nonparticipating royalties will be calculated for each tract, factoring in the depth or formation boundaries. It is important for the parties involved in such segregated tracts covered by one oil and gas lease to consult legal experts or attorneys familiar with Kansas oil and gas laws. These professionals can help navigate the complexities of the stipulation, ensuring compliance with state regulations and the fair distribution of nonparticipating royalties among the individual tract owners.

The Kansas Stipulation Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a legal agreement specific to the state of Kansas that addresses the payment of nonparticipating royalties for oil and gas leases. This stipulation applies when multiple tracts of land are covered by a single lease, and these tracts are segregated or divided for individual ownership purposes. The purpose of this stipulation is to ensure fair and equitable payment of nonparticipating royalties to all individual owners of the segregated tracts, considering their respective share of mineral rights and lease agreements. By implementing this stipulation, the interests and rights of both lessors and lessees are protected, preventing any potential disputes or discrepancies. Under this stipulation, there can be different types of arrangements depending on the specific circumstances and needs of the parties involved. Some variations and possible scenarios that may arise include: 1. Segregated Tracts by Surface Location: In cases where the segregated tracts are physically divided by their surface location or boundary lines, the stipulation defines the calculation and distribution of nonparticipating royalties based on the proportional acreage of each tract. 2. Segregated Tracts by Mineral Ownership: If the segregated tracts have different owners of the mineral rights, the stipulation considers the percentage ownership of each party. Nonparticipating royalty payments are then distributed accordingly, taking into account the varying levels of ownership interest. 3. Segregated Tracts by Depth or Formation: When the segregated tracts are divided based on specific depths or geological formations, the stipulation outlines how nonparticipating royalties will be calculated for each tract, factoring in the depth or formation boundaries. It is important for the parties involved in such segregated tracts covered by one oil and gas lease to consult legal experts or attorneys familiar with Kansas oil and gas laws. These professionals can help navigate the complexities of the stipulation, ensuring compliance with state regulations and the fair distribution of nonparticipating royalties among the individual tract owners.