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.
A New Jersey 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 related to the payment of nonparticipating royalties in the context of oil and gas exploration and production. This agreement is specific to the state of New Jersey and applies when multiple tracts of land are covered by a single oil and gas lease. Keywords: New Jersey Agreement Governing Payment, Nonparticipating Royalty, Segregated Tracts, Oil and Gas Lease. There are various types of agreements that fall under the New Jersey Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease category. These may include: 1. Standard Nonparticipating Royalty Agreement: This agreement establishes the standard terms and conditions for the payment of nonparticipating royalties for segregated tracts covered by a single oil and gas lease in New Jersey. 2. Modified Nonparticipating Royalty Agreement: This type of agreement includes custom modifications or additional clauses agreed upon by the parties involved. It allows for more flexibility in the payment structure or other aspects related to nonparticipating royalties. 3. Deferred Nonparticipating Royalty Agreement: In certain cases, the agreement may allow for the deferral of nonparticipating royalty payments. This could involve a delayed payment schedule or the accumulation of royalties until a certain threshold is reached, at which point payment would be triggered. 4. Minimum Royalty Agreement: This type of agreement guarantees a minimum royalty payment to the nonparticipating party, regardless of the actual production or revenue generated from the oil and gas lease. It ensures a baseline payment even in cases where production is minimal. 5. Competitive Bidding Agreement: This agreement is applied when multiple parties are interested in the same segregated tracts covered by the oil and gas lease. It establishes a competitive bidding process to determine the nonparticipating royalty structure, ensuring fair and transparent allocation of rights and payments. 6. Unitization Agreement: If the segregated tracts covered by the oil and gas lease are deemed economically more viable when combined, an unitization agreement may be employed. This agreement outlines the terms for pooling resources and sharing royalties among the participating and nonparticipating parties. These various types of New Jersey Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease reflect the specific needs and circumstances of the parties involved, addressing aspects like payment structure, customization, deferral, guaranteed minimums, competitive processes, and unitization.
