Houston Texas Term Royalty Deed

• Category: Oil Gas and Minerals - Deeds
• State: Multi-State
• City: Houston
• Control #: US-OG-045
• Format: Word; Rich Text

Description

This form conveys a royalty interest for a specified term of years. If there is production at the end of that term, or the lands are subject to an oil and gas lease, the interest will continue to be owned by the grantee until production ceases. Houston Texas Term Royalty Deed is a legal document used in the oil and gas industry to convey specified interests in mineral rights to an individual or entity. It is commonly used in Houston, Texas, where the oil and gas industry plays a significant role in the economy. A Term Royalty Deed is a type of agreement that grants the grantee the right to receive a certain percentage of the royalty from the production of oil, gas, or other minerals on a specific property, for a defined period of time. This deed allows the grantee to collect royalty payments without being responsible for the costs associated with the exploration and production activities. There are various types of Houston Texas Term Royalty Deeds, including: 1. Fixed-Term Royalty Deed: This type of deed grants the grantee the right to receive royalty payments for a predetermined period, usually a specific number of years. After the term expires, the rights revert to the granter. 2. Term-to-Depth Royalty Deed: Unlike fixed-term, this type of deed grants the grantee the right to receive royalties until the depth at which oil, gas, or minerals are produced, as specified in the agreement. Once the specified depth is reached, the rights cease to exist. 3. Term-to-Deliverability Royalty Deed: This deed grants the grantee the right to receive royalties until the oil, gas, or minerals produced on the property reach a specified level of marketable deliverability, as agreed upon between the granter and grantee. Once the deliverability level is reached, the rights expire. 4. Term-to-Production Royalty Deed: This type of deed grants the grantee the right to receive royalties until a predetermined amount of oil, gas, or minerals are produced from the property. Once the specified production volume is reached, the rights terminate. 5. Term-to-Cash Flow Royalty Deed: This deed entitles the grantee to receive royalties until a predetermined amount of cash flow is achieved from the production of oil, gas, or minerals. Once the agreed cash flow level is met, the rights under the deed come to an end. Houston Texas Term Royalty Deeds are crucial in the oil and gas industry as they provide a mechanism for those who don't want to engage in exploration and production activities to benefit from the valuable mineral resources. These deeds create a contractual relationship between the granter and grantee, outlining the terms and conditions that govern the royalty payments. It is essential for both parties to seek legal advice and conduct thorough due diligence before entering into such agreements to ensure their rights and interests are protected.

Houston Texas Term Royalty Deed is a legal document used in the oil and gas industry to convey specified interests in mineral rights to an individual or entity. It is commonly used in Houston, Texas, where the oil and gas industry plays a significant role in the economy. A Term Royalty Deed is a type of agreement that grants the grantee the right to receive a certain percentage of the royalty from the production of oil, gas, or other minerals on a specific property, for a defined period of time. This deed allows the grantee to collect royalty payments without being responsible for the costs associated with the exploration and production activities. There are various types of Houston Texas Term Royalty Deeds, including: 1. Fixed-Term Royalty Deed: This type of deed grants the grantee the right to receive royalty payments for a predetermined period, usually a specific number of years. After the term expires, the rights revert to the granter. 2. Term-to-Depth Royalty Deed: Unlike fixed-term, this type of deed grants the grantee the right to receive royalties until the depth at which oil, gas, or minerals are produced, as specified in the agreement. Once the specified depth is reached, the rights cease to exist. 3. Term-to-Deliverability Royalty Deed: This deed grants the grantee the right to receive royalties until the oil, gas, or minerals produced on the property reach a specified level of marketable deliverability, as agreed upon between the granter and grantee. Once the deliverability level is reached, the rights expire. 4. Term-to-Production Royalty Deed: This type of deed grants the grantee the right to receive royalties until a predetermined amount of oil, gas, or minerals are produced from the property. Once the specified production volume is reached, the rights terminate. 5. Term-to-Cash Flow Royalty Deed: This deed entitles the grantee to receive royalties until a predetermined amount of cash flow is achieved from the production of oil, gas, or minerals. Once the agreed cash flow level is met, the rights under the deed come to an end. Houston Texas Term Royalty Deeds are crucial in the oil and gas industry as they provide a mechanism for those who don't want to engage in exploration and production activities to benefit from the valuable mineral resources. These deeds create a contractual relationship between the granter and grantee, outlining the terms and conditions that govern the royalty payments. It is essential for both parties to seek legal advice and conduct thorough due diligence before entering into such agreements to ensure their rights and interests are protected.