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.
The Texas Reservation of Additional Interests in Production (RI AIP) refers to a legal provision in the state of Texas that allows landowners to retain or reserve an interest in the production or proceeds of minerals extracted from their property. This reservation acts as a safeguard for landowners, ensuring they receive compensation for the extraction of minerals on their land. Under the Texas RI AIP, landowners can reserve various types of interests in production, including royalty interests, overriding royalty interests, and working interests. Each of these interests provides different rights and benefits to the landowner. 1. Royalty Interests: Royalty interests are the most common type of reservation under the RI AIP. Landowners retain a certain percentage of the total production or proceeds from the minerals extracted on their property. These interests are often negotiated during lease agreements and entitle the landowner to a share of the profits generated from the sale of minerals. 2. Overriding Royalty Interests: Overriding royalty interests are similar to royalty interests but are not directly associated with the landowner's ownership of the property. Instead, these interests are created through separate agreements, such as overriding royalty agreements, and grant a percentage of production or proceeds to a third party, typically related to a previous leasehold or working interest. 3. Working Interests: Working interests provide landowners with a direct ownership stake in the mineral production on their property. Unlike royalty interests, landowners with working interests assume a proportionate share of the costs associated with drilling, operating, and maintaining the wells. In return, they receive a share of the profits or losses generated from production. By utilizing the Texas Reservation of Additional Interests in Production, landowners can safeguard their financial interests and ensure they benefit from the extraction of minerals on their property. This provision protects landowners from potential exploitation and ensures that they receive fair compensation for the resources extracted from their land.
