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 Nevada Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a legally binding contract designed to regulate the payment of nonparticipating royalties within Nevada's oil and gas industry. This agreement establishes the terms and conditions under which the nonparticipating landowner, also known as the royalty owner, will receive compensation for the extraction and production of oil and gas from their segregated tracts covered by a single lease. Keywords: Nevada Agreement, Payment, Nonparticipating Royalty, Segregated Tracts, Oil and Gas Lease. There can be various types of Nevada Agreements Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease, based on specific arrangements and provisions. Here are a few possible variations: 1. Standard Nevada Agreement: This is the most common type of agreement, outlining the general terms and conditions for payment of nonparticipating royalties under segregated tracts covered by a single oil and gas lease in Nevada. 2. Area-specific Nevada Agreement: This type of agreement specifies the geographical area or region within Nevada where the segregated tracts are located. It may take into account any unique factors or considerations relevant to that particular region. 3. Duration-based Nevada Agreement: Some agreements may have a specific duration, stating the timeframe during which the nonparticipating royalty payments will be made. This ensures clarity regarding the period when the agreement is in effect. 4. Production-based Nevada Agreement: In this type of agreement, the payment of nonparticipating royalties is determined by the actual production of oil and gas from the segregated tracts covered by the lease. The agreement may include a formula or specific provisions outlining how royalty payments are calculated based on production volumes. 5. Customized Nevada Agreement: Depending on specific circumstances or requirements, parties involved may negotiate and draft a customized agreement tailored to their unique needs. This type of agreement may include additional provisions, safeguards, or limitations that are mutually agreed upon. Overall, the Nevada Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a crucial legal document that ensures fair compensation for nonparticipating landowners in Nevada's oil and gas industry. It sets clear guidelines for the payment of royalties and helps protect the rights and interests of all parties involved in oil and gas exploration, extraction, and production activities.
