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.
Louisiana Taking and Marketing Royalty Oil and Gas in Kind is a program established by the Louisiana Department of Natural Resources (DNR) to manage and regulate the collection and marketing of royalty oil and gas produced from state-owned lands. The program plays a crucial role in ensuring fair and accurate accounting of oil and gas resources and maximizing the state's revenue from these resources. Under this program, the DNR collaborates with the Office of Conservation and the Office of Mineral Resources to oversee the entire process, starting from production on state-owned lands to the final sales of oil and gas products. The aim is to efficiently handle the state's royalty share of oil and gas production and ensure that the state receives its fair compensation. There are primarily two types of Louisiana Taking and Marketing Royalty Oil and Gas in Kind programs: 1. Royalty Oil Program: The Royalty Oil Program deals with the collection and marketing of crude oil produced from state-owned lands. When oil is extracted, the operator needs to make royalty payments to the state. Instead of receiving these payments in cash, the state may elect to take its royalty share of oil production "in-kind." This means that the state receives the actual physical barrels of oil, which are then marketed and sold by the DNR on behalf of the state. 2. Royalty Gas Program: The Royalty Gas Program focuses on the collection and marketing of natural gas produced from state-owned lands. Similar to the Royalty Oil Program, the state may choose to take its royalty share of natural gas production "in-kind." This involves receiving the actual volume of natural gas, which is then marketed and sold to buyers by the DNR. The Louisiana Taking and Marketing Royalty Oil and Gas in Kind program maintains a robust infrastructure to handle the entire process efficiently. This includes storage facilities, pipelines, terminals, and marketing resources to ensure the timely sale and delivery of the oil and gas products. The program follows strict accounting standards to accurately measure, account for, and report all transactions related to the production, transportation, and sale of royalty oil and gas. Through this program, Louisiana ensures transparency, accountability, and fair compensation in the management of its oil and gas resources. By opting for in-kind royalty payments, the state can have more control over the marketing and sale of these products, aiming to maximize the value derived from its natural resources.
