North Dakota Commingle and Entirety Agreement By Royalty Owners, also known as ND CEA, is a legal document that governs the commingling and entirety of royalty ownership in lands subject to lease in North Dakota. This agreement is crucial when multiple royalty owners have varying interests in the same parcel of land or lease. Commingling refers to the process of combining or mixing together multiple streams of oil or gas production into a single stream. In North Dakota, where oil and gas activities are prominent, commingling agreements ensure fair distribution and accounting of royalties among participating owners. The North Dakota Commingle and Entirety Agreement By Royalty Owners provides a framework for royalty owners to define their individual interests and resources. It outlines the responsibilities of the royalty owners, operators, and leaseholders in terms of reporting, accounting, and distributing royalties. The agreement also establishes procedures for determining ownership percentages, managing disputes, and ensuring compliance with state regulations. By documenting the rights and obligations of all parties involved, this agreement helps to avoid conflicts and confusion regarding royalty ownership in lands subject to lease. While the term "ND CEA" generally refers to a standard agreement, there can be variations based on specific conditions or circumstances. These variations may include: 1. Percentage-Based Commingling Agreement: This agreement determines ownership percentages based on the share of production contributed by each royalty owner. These percentages are often calculated upon the initial production date or periodically adjusted as production levels change. 2. Time-Based Commingle Agreement: This agreement may involve designating specific time intervals during which owners can opt to commingle their royalty interests. For example, a royalty owner may choose to commingle their oil or gas production during a certain month or year, allowing for easier calculation and distribution of royalties. 3. Multi-Lease Commingle Agreement: In cases where a single royalty owner may have interests in multiple leases within the same area, a multi-lease commingle agreement specifies the process to aggregate and distribute the royalties from these different leases to ensure fairness and efficiency. Overall, the North Dakota Commingle and Entirety Agreement By Royalty Owners plays a vital role in facilitating effective management and fair allocation of royalty interests in lands subject to lease in North Dakota.