Puerto Rico Stipulation Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-622
• Format: Word; Rich Text

Description

This form is used when the parties own nonparticipating royalty interests in various tracts of land. The Lease covers all of the lands owned by the parties. 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 Stipulation to stipulate and agree to the ownership of each party's respective share of the royalty reserved in the lease. Puerto Rico Stipulation Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a legal framework that pertains specifically to the payment of nonparticipating royalty for segregated tracts under a single oil and gas lease in Puerto Rico. It outlines the specific terms and conditions that govern the distribution of royalties among different tract owners within the lease agreement. Under this stipulation, the nonparticipating royalty refers to the portion of the royalties that is payable to the owners of segregated tracts who do not have a working interest in the lease. It ensures that these nonparticipating tract owners receive their fair share of the proceeds generated from the extraction and production activities on the leased property. This Puerto Rico stipulation includes provisions for determining the allocation and calculation of nonparticipating royalty payments based on factors such as the size, location, and production potential of each tract. It sets out the specific formulae or methodologies to be used to determine the royalty payments, taking into account factors like production volumes, market prices, and lease operating expenses. Additionally, this stipulation also addresses the timing and frequency of royalty payments, stating whether they should be paid monthly, quarterly, or annually and outlining the procedures for distributing the funds to the respective tract owners. It may also include provisions for interest accrual on delayed or unpaid royalty amounts, penalties for non-compliance, and reconciliation of any disputes arising from royalty calculations or payments. Different types or variations of Puerto Rico Stipulation Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease may exist based on the unique characteristics of each lease agreement. These variations could encompass different allocation methodologies, payment schedules, minimum royalty provisions, and other specific terms customized to the circumstances of the particular lease. Keywords: Puerto Rico, stipulation, governing, payment, nonparticipating royalty, segregated tracts, oil and gas lease, legal framework, distribution, owners, fair share, extraction, production activities, allocation, calculation, timing, frequency, formulae, methodologies, procedures, interest accrual, penalties, disputes, variations, lease agreement.

Puerto Rico Stipulation Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a legal framework that pertains specifically to the payment of nonparticipating royalty for segregated tracts under a single oil and gas lease in Puerto Rico. It outlines the specific terms and conditions that govern the distribution of royalties among different tract owners within the lease agreement. Under this stipulation, the nonparticipating royalty refers to the portion of the royalties that is payable to the owners of segregated tracts who do not have a working interest in the lease. It ensures that these nonparticipating tract owners receive their fair share of the proceeds generated from the extraction and production activities on the leased property. This Puerto Rico stipulation includes provisions for determining the allocation and calculation of nonparticipating royalty payments based on factors such as the size, location, and production potential of each tract. It sets out the specific formulae or methodologies to be used to determine the royalty payments, taking into account factors like production volumes, market prices, and lease operating expenses. Additionally, this stipulation also addresses the timing and frequency of royalty payments, stating whether they should be paid monthly, quarterly, or annually and outlining the procedures for distributing the funds to the respective tract owners. It may also include provisions for interest accrual on delayed or unpaid royalty amounts, penalties for non-compliance, and reconciliation of any disputes arising from royalty calculations or payments. Different types or variations of Puerto Rico Stipulation Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease may exist based on the unique characteristics of each lease agreement. These variations could encompass different allocation methodologies, payment schedules, minimum royalty provisions, and other specific terms customized to the circumstances of the particular lease. Keywords: Puerto Rico, stipulation, governing, payment, nonparticipating royalty, segregated tracts, oil and gas lease, legal framework, distribution, owners, fair share, extraction, production activities, allocation, calculation, timing, frequency, formulae, methodologies, procedures, interest accrual, penalties, disputes, variations, lease agreement.