Pennsylvania Commingling and Entirety Agreement By Royalty Owners (C&E Agreement) is a legal document that ensures the effective development and distribution of oil and gas resources in areas where the ownership of royalty interests varies across leased lands. The C&E Agreement allows royalty owners who have varying ownership percentages in a lease area to pool their interests together for the purposes of production and distribution. This agreement ensures that the development of oil and gas resources is not hindered by fragmented ownership and allows for efficient and profitable operations. In Pennsylvania, there are mainly two types of C&E Agreements commonly used by royalty owners: 1. Traditional Pennsylvania Commingling and Entirety Agreement: This type of agreement is executed when there are multiple royalty owners with varying percentages of ownership on different parcels of land subject to the same lease. The agreement allows for the pooling of these diverse interests into a single "commingled interest" for the purpose of production and distribution. 2. Modified Pennsylvania Commingling and Entirety Agreement: This agreement is used when the ownership interests vary not only across different parcels of land but also within a single parcel. It addresses discrepancies in royalty interests by creating modified payment terms and allocation mechanisms that ensure equitable distribution of royalties among owners. Keywords: Pennsylvania, Commingling and Entirety Agreement, Royalty Owners, Royalty Ownership, Lands Subject to Lease, oil and gas resources, development, distribution, ownership percentages, pooled interests, production, profitable operations, fragmented ownership, parcels of land, commingled interest, modified payment terms, allocation mechanisms.