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 Nebraska Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a legal document that outlines the terms and conditions for the payment of nonparticipating royalty owners in Nebraska. This agreement is specifically designed for oil and gas leases that cover multiple segregated tracts of land. One type of Nebraska Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is the Unitization Agreement. This agreement allows for the pooling and unitization of multiple tracts into a single unit for the purposes of oil and gas exploration and production. It outlines how the nonparticipating royalty owners will be paid and how their interests will be protected within the unit. Another type of Nebraska Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is the Pugh Clause Agreement. This agreement is used when a lease covers both participating and nonparticipating royalty owners. The Pugh Clause ensures that the nonparticipating royalty owners receive fair compensation only for the tracts where the lease is actively producing oil and gas, while the participating royalty owners receive compensation for the entire leased area. The Nebraska Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease also includes provisions for royalty calculation, payment terms, accounting procedures, and dispute resolution mechanisms. It ensures that the nonparticipating royalty owners receive their fair share of royalty payments based on their respective ownership interests in the segregated tracts. This agreement is crucial for maintaining transparency, clarity, and fairness in the distribution of royalty payments among nonparticipating royalty owners in Nebraska. It protects their rights and provides a legal framework for the efficient management of oil and gas leases covering multiple segregated tracts.
