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 Virgin Islands 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 for the payment of nonparticipating royalties in the Virgin Islands related to oil and gas leases. This agreement is applicable to multiple types of segregated tracts covered by a single oil and gas lease within the Virgin Islands. Nonparticipating royalties refer to the rights of individuals or entities who own the mineral rights but do not actively participate in the operations or extraction of oil and gas resources. Instead, they receive a share of the revenue generated from the production of these resources. The purpose of the Virgin Islands Agreement is to establish a fair and transparent mechanism for the calculation and distribution of nonparticipating royalties among multiple segregated tracts covered by one oil and gas lease. This ensures that all parties involved receive their rightful share of the revenue generated from the extraction activities. The agreement typically includes provisions related to royalty calculations, payment schedules, reporting requirements, and dispute resolution mechanisms. It may also define specific terms and conditions unique to the Virgin Islands jurisdiction, such as environmental regulations and local content requirements. Different types of Virgin Islands Agreements Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease may exist depending on the specific characteristics or locations of the segregated tracts. For example, there could be agreements specific to offshore oil and gas leases, onshore leases, or leases within different geographical areas of the Virgin Islands. Keywords: Virgin Islands, Agreement, Governing, Payment, Nonparticipating Royalty, Segregated Tracts, Oil and Gas Lease, Legal Document, Terms and Conditions, Revenue, Calculation, Distribution, Extraction, Mineral Rights, Fairness, Transparency, Calculations, Payment Schedules, Reporting Requirements, Dispute Resolution, Environmental Regulations, Local Content Requirements, Offshore, Onshore, Geographical Areas.
