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.
Washington Shut-In Gas Royalty refers to the compensation paid to gas leaseholders in Washington state when their gas wells are temporarily shut-in due to various reasons, such as lack of market demand, infrastructure constraints, or safety concerns. This royalty payment is intended to reimburse leaseholders for their loss of income during the shut-in period. Keywords: Washington, shut-in gas royalty, gas wells, compensation, gas leaseholders, shut-in period, loss of income, market demand, infrastructure constraints, safety concerns. There are two types of Washington Shut-In Gas Royalty: 1. Temporary Shut-In Gas Royalty: Under this type, leaseholders receive compensation when their gas wells are temporarily shut-in for a short duration due to market factors or infrastructure limitations. Temporary shut-ins might occur during periods of low gas prices or when there is insufficient pipeline capacity to transport the produced gas to the market. The compensation provided helps mitigate the financial impact on leaseholders during these temporary shut-in periods. 2. Safety Shut-In Gas Royalty: This type of royalty payment is granted when gas wells are shut-in as a precautionary measure due to safety concerns. Safety shut-ins might be enforced when there is a risk of gas leaks, equipment failures, or any potential hazards that could endanger personnel or nearby communities. Leaseholders are compensated for their loss of income during the shut-in period, as their gas production cannot be utilized until safety concerns are adequately addressed. Overall, Washington Shut-In Gas Royalty serves as a financial support mechanism for gas leaseholders during temporary and safety-related shut-in periods. It ensures that leaseholders are fairly compensated for their loss of income when their gas wells are not actively producing and helps alleviate the financial impact caused by market dynamics or safety concerns.
