This lease rider form may be used when you are involved in a lease transaction, and have made the decision to utilize the form of Oil and Gas Lease presented to you by the Lessee, and you want to include additional provisions to that Lease form to address specific concerns you may have, or place limitations on the rights granted the Lessee in the standard lease form.
Oregon Shut-In Oil Royalty refers to a specific type of royalty interest associated with oil production in the state of Oregon, United States. It is crucial to note that Oregon has limited oil production compared to other states, making its shut-in oil royalty arrangements unique. A shut-in oil royalty occurs when oil production at a specific well or oil field is temporarily ceased due to various reasons such as market conditions, technical difficulties, or inadequate infrastructure. When the oil production is shut-in, the royalty owner continues to receive a portion of the revenue generated from the oil well, despite no active extraction taking place. This incentive ensures that royalty owners are compensated for the temporary halt in production. In Oregon, there are different types of shut-in oil royalty agreements based on the stipulations outlined in the lease contracts and applicable laws. Some of these types include: 1. Fixed Percentage Royalty: Under this arrangement, the royalty owner is entitled to a fixed percentage of the revenue generated by the oil well, even if it is shut-in. This fixed percentage is predetermined in the lease agreement, ensuring a predictable income stream for the owner during periods of shut-in. 2. Sliding Scale Royalty: Unlike the fixed percentage royalty, a sliding scale royalty adjusts the royalty rate depending on various factors such as oil prices, production volumes, or economic conditions. This type of shut-in oil royalty provides flexibility in royalty payments, allowing for potential increases or decreases based on predefined triggers. 3. Shut-In Royalty Clause: Some leases may have specific shut-in royalty clauses that provide additional terms and conditions for royalty payments during periods of shut-in. These clauses may specify how long the shut-in period can last, any applicable qualifications for triggering a shut-in, and the methodology for determining the royalty amount during this time. Keywords: Oregon, shut-in oil royalty, oil production, royalty interest, well, oil field, revenue, temporary halt, lease agreement, fixed percentage royalty, sliding scale royalty, shut-in royalty clause, oil prices, production volumes, economic conditions.
