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.
Texas Shut-In Gas Royalty is a type of royalty payment that is imposed on natural gas production activities in the state of Texas, specifically when the gas is unable to be produced and is temporarily shut-in. The term "shut-in" refers to the situation when the produced natural gas is unable to flow from the well to the market due to various reasons such as low demand, infrastructure constraints, or economic viability issues. Keywords: Texas Shut-In Gas Royalty, natural gas production, shut-in, royalty payment, Texas, flow, well, market, demand, infrastructure constraints, economic viability. There are several types of Texas Shut-In Gas Royalty that can be differentiated based on the specific circumstances and criteria defined by the regulatory authorities. The most common types include: 1. Economic Shut-In Royalty: This type of shut-in royalty is imposed on natural gas wells when the market price for natural gas falls below a certain predetermined threshold. The economic viability of extracting and selling the gas is hampered, leading to temporary shut-in status. Operators may be entitled to claim shut-in royalty payments during this period. 2. Seasonal Shut-In Royalty: In situations where the demand for natural gas experiences seasonal fluctuations or when pipeline capacity is overstretched to meet peak demand, natural gas wells may be temporarily shut-in during off-peak seasons. Seasonal shut-in royalty is applicable in such cases, compensating operators for potential economic losses incurred during the unproductive period. 3. Infrastructure Shut-In Royalty: In scenarios where the infrastructure required to transport natural gas from the well to the market is inadequate or requires maintenance, the well may be temporarily shut-in. Infrastructure shut-in royalty caters to compensating operators for the delays and financial burden caused by infrastructure constraints or upkeep activities. 4. Regulatory Shut-In Royalty: Occasionally, regulatory bodies may issue orders or regulations mandating the suspension of natural gas production due to safety concerns, environmental issues, or other unforeseen circumstances. Regulatory shut-in royalty may be provided to operators affected by such directives, acknowledging the halt in production and providing financial relief during the shut-in period. Operators must fulfill specific criteria and comply with the regulations defined by the Texas Railroad Commission (RRC) to qualify for shut-in royalty payments. These criteria usually include timely reporting, accurate documentation, and demonstrable evidence of the shut-in status. In summary, the Texas Shut-In Gas Royalty is an essential component of the Texas natural gas industry, providing compensation to operators when gas production is temporarily halted. The various types of shut-in royalty address distinct scenarios such as economic viability, seasonal fluctuations, infrastructure constraints, and regulatory directives.Texas Shut-In Gas Royalty is a type of royalty payment that is imposed on natural gas production activities in the state of Texas, specifically when the gas is unable to be produced and is temporarily shut-in. The term "shut-in" refers to the situation when the produced natural gas is unable to flow from the well to the market due to various reasons such as low demand, infrastructure constraints, or economic viability issues. Keywords: Texas Shut-In Gas Royalty, natural gas production, shut-in, royalty payment, Texas, flow, well, market, demand, infrastructure constraints, economic viability. There are several types of Texas Shut-In Gas Royalty that can be differentiated based on the specific circumstances and criteria defined by the regulatory authorities. The most common types include: 1. Economic Shut-In Royalty: This type of shut-in royalty is imposed on natural gas wells when the market price for natural gas falls below a certain predetermined threshold. The economic viability of extracting and selling the gas is hampered, leading to temporary shut-in status. Operators may be entitled to claim shut-in royalty payments during this period. 2. Seasonal Shut-In Royalty: In situations where the demand for natural gas experiences seasonal fluctuations or when pipeline capacity is overstretched to meet peak demand, natural gas wells may be temporarily shut-in during off-peak seasons. Seasonal shut-in royalty is applicable in such cases, compensating operators for potential economic losses incurred during the unproductive period. 3. Infrastructure Shut-In Royalty: In scenarios where the infrastructure required to transport natural gas from the well to the market is inadequate or requires maintenance, the well may be temporarily shut-in. Infrastructure shut-in royalty caters to compensating operators for the delays and financial burden caused by infrastructure constraints or upkeep activities. 4. Regulatory Shut-In Royalty: Occasionally, regulatory bodies may issue orders or regulations mandating the suspension of natural gas production due to safety concerns, environmental issues, or other unforeseen circumstances. Regulatory shut-in royalty may be provided to operators affected by such directives, acknowledging the halt in production and providing financial relief during the shut-in period. Operators must fulfill specific criteria and comply with the regulations defined by the Texas Railroad Commission (RRC) to qualify for shut-in royalty payments. These criteria usually include timely reporting, accurate documentation, and demonstrable evidence of the shut-in status. In summary, the Texas Shut-In Gas Royalty is an essential component of the Texas natural gas industry, providing compensation to operators when gas production is temporarily halted. The various types of shut-in royalty address distinct scenarios such as economic viability, seasonal fluctuations, infrastructure constraints, and regulatory directives.
