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.
In West Virginia, minimum royalty payments refer to the legally mandated minimum amount of compensation that landowners receive for the extraction and production of natural resources on their property. These payments are critical in ensuring fair compensation to landowners for the use of their mineral rights. The West Virginia minimum royalty payments serve as a protective measure for landowners by guaranteeing a certain percentage of the value of the resources extracted from their property. These payments are typically based on a percentage of the gross proceeds from the sale of the extracted minerals. There are several types of West Virginia minimum royalty payments that landowners should be aware of. These include: 1. Statutory Minimum Royalty: This type of payment is prescribed by state law and ensures that landowners receive a specific minimum percentage of the gross proceeds. In West Virginia, the statutory minimum royalty rate is typically set at 12.5% of the value of the extracted minerals. 2. Lease Minimum Royalty: Landowners and energy companies may negotiate specific terms and conditions regarding royalty payments in the lease agreement. This can include a negotiated minimum royalty rate that exceeds the statutory minimum. The lease minimum royalty provides additional protection to landowners to ensure fair compensation for the use of their mineral rights. 3. Production Minimum Royalty: Sometimes referred to as a "shut-in royalty," this type of payment is applicable when the well or mine is not in active production but remains capable of producing resources. It guarantees a minimum royalty payment to the landowner during periods of inactivity. Landowners should carefully review lease agreements and consult with legal professionals to ensure the inclusion of fair and favorable terms regarding minimum royalty payments. Understanding the various types of minimum royalty payments can help landowners safeguard their rights and maximize compensation for the extraction of valuable natural resources from their West Virginia property.In West Virginia, minimum royalty payments refer to the legally mandated minimum amount of compensation that landowners receive for the extraction and production of natural resources on their property. These payments are critical in ensuring fair compensation to landowners for the use of their mineral rights. The West Virginia minimum royalty payments serve as a protective measure for landowners by guaranteeing a certain percentage of the value of the resources extracted from their property. These payments are typically based on a percentage of the gross proceeds from the sale of the extracted minerals. There are several types of West Virginia minimum royalty payments that landowners should be aware of. These include: 1. Statutory Minimum Royalty: This type of payment is prescribed by state law and ensures that landowners receive a specific minimum percentage of the gross proceeds. In West Virginia, the statutory minimum royalty rate is typically set at 12.5% of the value of the extracted minerals. 2. Lease Minimum Royalty: Landowners and energy companies may negotiate specific terms and conditions regarding royalty payments in the lease agreement. This can include a negotiated minimum royalty rate that exceeds the statutory minimum. The lease minimum royalty provides additional protection to landowners to ensure fair compensation for the use of their mineral rights. 3. Production Minimum Royalty: Sometimes referred to as a "shut-in royalty," this type of payment is applicable when the well or mine is not in active production but remains capable of producing resources. It guarantees a minimum royalty payment to the landowner during periods of inactivity. Landowners should carefully review lease agreements and consult with legal professionals to ensure the inclusion of fair and favorable terms regarding minimum royalty payments. Understanding the various types of minimum royalty payments can help landowners safeguard their rights and maximize compensation for the extraction of valuable natural resources from their West Virginia property.
