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 South Dakota Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a legal document that outlines the terms and conditions regarding the payment of nonparticipating royalties for oil and gas production on segregated tracts covered by a single lease in the state of South Dakota. This agreement is crucial for ensuring fair compensation to nonparticipating holders of mineral rights who do not have an active role in the exploration and production process. Within the context of South Dakota's oil and gas industry, there can be different types of agreements governing the payment of nonparticipating royalties under segregated tracts covered by a single lease. These can include: 1. Standard Agreement: This is the most common type of agreement that outlines the general terms and conditions for the payment of nonparticipating royalties under segregated tracts covered by a single lease. It covers various aspects such as royalty rates, payment schedules, and any additional provisions specific to South Dakota's regulations. 2. Modification Agreement: In certain cases, parties involved may wish to modify specific terms of the standard agreement to better suit their needs or address unique circumstances. A modification agreement allows for alterations to the original agreement, ensuring that both parties are in agreement regarding any changes made. 3. Extension Agreement: An extension agreement comes into play when the original agreement's term is near expiration, but the parties involved intend to continue the arrangement. This agreement extends the duration of the existing agreement, ensuring the continued payment of nonparticipating royalties under the same terms. 4. Amendment Agreement: If there are changes or updates required to an existing agreement that does not necessitate a complete modification, an amendment agreement is used. It allows for the addition, removal, or alteration of specific clauses within the original agreement, ensuring it remains up to date and reflective of the parties' intentions. Keywords: South Dakota, agreement, governing, payment, nonparticipating royalty, segregated tracts, oil and gas, lease, standard agreement, modification agreement, extension agreement, amendment agreement.
