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 Missouri Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a legally binding document that outlines the terms and conditions for the payment of nonparticipating royalties in relation to oil and gas extraction on segregated tracts covered by a single lease in the state of Missouri. This agreement serves to protect the rights of nonparticipating mineral interest owners who do not have a direct ownership interest in the oil and gas lease, but are entitled to receive a share of the royalties generated from the production of oil and gas on the segregated tracts. The agreement sets forth the rules and regulations governing the calculation, payment, and distribution of nonparticipating royalties, ensuring that these interest owners receive their fair share of the proceeds. It specifies the manner in which the royalties will be calculated, such as using the gross proceeds or net proceeds after deducting certain expenses. Additionally, this agreement outlines the responsibilities and obligations of both the operator and the nonparticipating royalty interest owners. It includes provisions related to audits, accounting, reporting, and dispute resolution to ensure transparency and accountability in royalty payments. There may be different types of Missouri Agreements Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease based on the specific terms and conditions agreed upon by the parties involved. Some potential variations could include agreements with different royalty calculation methods, varying payment frequencies, or specific provisions for unique circumstances. Keywords: Missouri, agreement, governing, payment, nonparticipating royalty, segregated tracts, oil and gas lease, terms and conditions, rights, mineral interest owners, royalties, production, calculation, distribution, obligations, operator, audits, accounting, reporting, dispute resolution, transparency, accountability.
