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.
West Virginia Shut-In Oil Royalty refers to the contractual rights or interests held by oil and gas landowners in West Virginia when their oil wells are shut-in due to various reasons, such as low oil prices, production constraints, or technical problems. This type of royalty allows landowners to receive compensation even if extraction or production is temporarily suspended. Shut-in oil royalties provide a way for landowners to retain their property rights during non-production periods while still benefitting economically. These royalties are typically based on a percentage of the oil or gas production value that would have been realized had the wells been operating normally. The specific terms and conditions of shut-in oil royalties vary between different leases and agreements. Keywords: West Virginia, Shut-in, oil royalty, contractual rights, oil wells, compensation, extraction, production, temporarily suspended, property rights, non-production periods, economically, percentage, operating normally, terms and conditions, leases, agreements. Different types of West Virginia Shut-In Oil Royalty: 1. Temporary Shut-In Oil Royalty: This type of royalty applies when oil wells are shut-in for a limited period due to short-term factors like maintenance or routine repairs. 2. Price-Related Shut-In Oil Royalty: This royalty category comes into effect when low oil prices make production uneconomical, leading to the temporary suspension of oil wells. Landowners receive compensation based on the potential production value during the shut-in period. 3. Production-Constrained Shut-In Oil Royalty: In this case, production limitations such as insufficient storage capacity or transportation infrastructure prevent the continued operation of oil wells. Landowners still receive royalties proportional to the expected production value if constraints did not exist. 4. Technical Problem Shut-In Oil Royalty: When technical issues such as equipment failure, reservoir damage, or regulatory compliance prevent oil extraction, this type of shut-in royalty is applied. Compensation is based on what the production value would have been without the technical problems. 5. Force Mature Shut-In Oil Royalty: This category covers shut-in periods caused by unforeseen circumstances beyond the operator's control, such as natural disasters, government interventions, or acts of war. Landowners are entitled to royalties during these exceptional circumstances. Keywords: Temporary, Price-Related, Production-Constrained, Technical Problem, Force Mature, shut-in oil royalty, limited period, low oil prices, uneconomical, production value, maintenance, repairs, constraints, storage capacity, transportation infrastructure, operation, equipment failure, reservoir damage, regulatory compliance, unforeseen circumstances, natural disasters, government interventions, acts of war.West Virginia Shut-In Oil Royalty refers to the contractual rights or interests held by oil and gas landowners in West Virginia when their oil wells are shut-in due to various reasons, such as low oil prices, production constraints, or technical problems. This type of royalty allows landowners to receive compensation even if extraction or production is temporarily suspended. Shut-in oil royalties provide a way for landowners to retain their property rights during non-production periods while still benefitting economically. These royalties are typically based on a percentage of the oil or gas production value that would have been realized had the wells been operating normally. The specific terms and conditions of shut-in oil royalties vary between different leases and agreements. Keywords: West Virginia, Shut-in, oil royalty, contractual rights, oil wells, compensation, extraction, production, temporarily suspended, property rights, non-production periods, economically, percentage, operating normally, terms and conditions, leases, agreements. Different types of West Virginia Shut-In Oil Royalty: 1. Temporary Shut-In Oil Royalty: This type of royalty applies when oil wells are shut-in for a limited period due to short-term factors like maintenance or routine repairs. 2. Price-Related Shut-In Oil Royalty: This royalty category comes into effect when low oil prices make production uneconomical, leading to the temporary suspension of oil wells. Landowners receive compensation based on the potential production value during the shut-in period. 3. Production-Constrained Shut-In Oil Royalty: In this case, production limitations such as insufficient storage capacity or transportation infrastructure prevent the continued operation of oil wells. Landowners still receive royalties proportional to the expected production value if constraints did not exist. 4. Technical Problem Shut-In Oil Royalty: When technical issues such as equipment failure, reservoir damage, or regulatory compliance prevent oil extraction, this type of shut-in royalty is applied. Compensation is based on what the production value would have been without the technical problems. 5. Force Mature Shut-In Oil Royalty: This category covers shut-in periods caused by unforeseen circumstances beyond the operator's control, such as natural disasters, government interventions, or acts of war. Landowners are entitled to royalties during these exceptional circumstances. Keywords: Temporary, Price-Related, Production-Constrained, Technical Problem, Force Mature, shut-in oil royalty, limited period, low oil prices, uneconomical, production value, maintenance, repairs, constraints, storage capacity, transportation infrastructure, operation, equipment failure, reservoir damage, regulatory compliance, unforeseen circumstances, natural disasters, government interventions, acts of war.
