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 Los Angeles California 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 relation to oil and gas leasing in Los Angeles, California. This agreement is specific to situations where multiple tracts are covered by a single lease. Keyword: Nonparticipating Royalty A nonparticipating royalty, in the context of oil and gas leasing, refers to a type of ownership interest in which the holder is entitled to a share of the revenue generated from the production and extraction of oil and gas, but does not have the right to participate in the actual operations or decision-making process. Keyword: Segregated Tracts are individual parcels of land or areas that have been divided or separated from a larger piece of land for the purpose of oil and gas leasing. In the context of this agreement, it refers to specific areas within Los Angeles, California that are covered by the same oil and gas lease, but may have separate terms and conditions for the payment of nonparticipating royalties. The Los Angeles California Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease may have different variations or types based on certain factors. These can include: 1. Tract Size Variation: — If the segregated tracts covered by the lease vary significantly in size, different payment structures or rates may be specified for each tract, depending on its productivity or potential. 2. Royalty Percentage Variation: — Depending on the terms negotiated between the parties involved, the agreement may define varying royalty percentages for different segregated tracts. This can be influenced by factors such as the size, location, or estimated production potential of each tract. 3. Timeframe Variation: — The agreement may have different versions or revisions depending on the time period it covers. As oil and gas leases can span several years or even decades, the agreement may be updated or amended periodically to reflect changes in market conditions, regulations, or other relevant factors. It is important to consult with legal professionals or experts in oil and gas leasing to fully understand the specific terms and variations of the Los Angeles California Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease in order to ensure compliance and maximize potential revenue.
