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 New Hampshire 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 in relation to oil and gas leases in New Hampshire. This agreement is designed to ensure fair and equitable distribution of royalty payments to nonparticipating landowners whose land is located within segregated tracts covered by a single oil and gas lease. The agreement is applicable in cases where multiple tracts of land are included in a single lease, but only some of these tracts are actively participating in the oil and gas extraction and production process. Nonparticipating landowners, who do not directly benefit from the extraction activities on their land, are entitled to receive a portion of the royalty payments generated from all the participating tracts. The New Hampshire Agreement ensures that these nonparticipating landowners are fairly compensated. Key terms and conditions outlined in the New Hampshire Agreement include: 1. Segregated Tracts: The agreement specifies the method for segregating the participating and nonparticipating tracts within a lease. This could be determined based on a variety of factors such as geography, surface area, mineral rights ownership, or other relevant criteria. 2. Nonparticipating Royalty: The agreement defines the percentage or share of the royalty payments that nonparticipating landowners are entitled to receive. This can vary depending on the specific terms negotiated between the parties involved. 3. Payment Process: The agreement details the procedures for calculating, distributing, and remitting the nonparticipating royalty payments. It may specify the frequency of payments, the format of payment statements, and the timeline for distribution. 4. Reporting and Auditing: The agreement may include provisions for reporting and auditing to ensure accurate calculation and distribution of nonparticipating royalty payments. This allows for transparency and accountability in the payment process. 5. Dispute Resolution: In the event of any disputes or disagreements regarding the payment of nonparticipating royalty, the agreement may establish procedures for resolution, such as mediation or arbitration. There may be different types of agreements governing the payment of nonparticipating royalty under segregated tracts covered by one oil and gas lease in New Hampshire, each tailored to the specific circumstances and needs of the parties involved. These could include variations in the royalty percentage, payment terms, or dispute resolution mechanisms. However, the overall purpose remains the same — to ensure fair compensation for nonparticipating landowners in oil and gas extraction activities.
