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.
Oakland Michigan Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a legally binding document that outlines the terms and conditions regarding the payment of nonparticipating royalty for specific oil and gas leases in Oakland County, Michigan. This agreement is crucial to ensure fair compensation to nonparticipating royalty owners for the extraction of natural resources from their land. The agreement establishes the framework for the payment of nonparticipating royalty to individuals or entities who do not hold an interest in the leased oil and gas property but still have the right to receive a percentage of the revenue generated from its exploitation. These nonparticipating royalty owners typically own the surface or minerals rights to these segregated tracts covered by the oil and gas lease. Key provisions within the Oakland Michigan Agreement may include: 1. Definition of Nonparticipating Royalty Owner: The agreement clarifies who qualifies as a nonparticipating royalty owner, typically individuals or entities who own the surface or mineral rights within the segregated tracts covered by the oil and gas lease but did not participate in the initial lease agreement. 2. Calculation of Nonparticipating Royalty: The agreement provides the formula and methodology to determine the amount of nonparticipating royalty payable to the nonparticipating royalty owners. This calculation is based on the production volume, market prices, and royalty percentage agreed upon in the lease. 3. Frequency and Method of Payment: The agreement specifies the frequency and method of payment for the nonparticipating royalty. Typically, payments are made on a regular basis, such as monthly or quarterly, and can be made via check, wire transfer, or direct deposit. 4. Audit Rights: The agreement may grant nonparticipating royalty owners the right to audit the operator's records to verify the accuracy of the royalty calculations and ensure the correct payment amount. 5. Confidentiality: The agreement may include provisions requiring the operator to keep all financial and proprietary information confidential to protect both the operator and the nonparticipating royalty owners' interests. 6. Dispute Resolution: In the event of a disagreement or dispute arising from the nonparticipating royalty payments, the agreement may outline a process for mediation, arbitration, or litigation to resolve the issue. Different types of Oakland Michigan agreements governing the payment of nonparticipating royalty under segregated tracts covered by one oil and gas lease may exist, varying in their specific terms and conditions. These agreements could differ based on factors such as the percentage of royalty, the length of the lease agreement, the specific regulations and laws applicable to the region, and any additional provisions negotiated between the operator and the nonparticipating royalty owners.Oakland Michigan Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a legally binding document that outlines the terms and conditions regarding the payment of nonparticipating royalty for specific oil and gas leases in Oakland County, Michigan. This agreement is crucial to ensure fair compensation to nonparticipating royalty owners for the extraction of natural resources from their land. The agreement establishes the framework for the payment of nonparticipating royalty to individuals or entities who do not hold an interest in the leased oil and gas property but still have the right to receive a percentage of the revenue generated from its exploitation. These nonparticipating royalty owners typically own the surface or minerals rights to these segregated tracts covered by the oil and gas lease. Key provisions within the Oakland Michigan Agreement may include: 1. Definition of Nonparticipating Royalty Owner: The agreement clarifies who qualifies as a nonparticipating royalty owner, typically individuals or entities who own the surface or mineral rights within the segregated tracts covered by the oil and gas lease but did not participate in the initial lease agreement. 2. Calculation of Nonparticipating Royalty: The agreement provides the formula and methodology to determine the amount of nonparticipating royalty payable to the nonparticipating royalty owners. This calculation is based on the production volume, market prices, and royalty percentage agreed upon in the lease. 3. Frequency and Method of Payment: The agreement specifies the frequency and method of payment for the nonparticipating royalty. Typically, payments are made on a regular basis, such as monthly or quarterly, and can be made via check, wire transfer, or direct deposit. 4. Audit Rights: The agreement may grant nonparticipating royalty owners the right to audit the operator's records to verify the accuracy of the royalty calculations and ensure the correct payment amount. 5. Confidentiality: The agreement may include provisions requiring the operator to keep all financial and proprietary information confidential to protect both the operator and the nonparticipating royalty owners' interests. 6. Dispute Resolution: In the event of a disagreement or dispute arising from the nonparticipating royalty payments, the agreement may outline a process for mediation, arbitration, or litigation to resolve the issue. Different types of Oakland Michigan agreements governing the payment of nonparticipating royalty under segregated tracts covered by one oil and gas lease may exist, varying in their specific terms and conditions. These agreements could differ based on factors such as the percentage of royalty, the length of the lease agreement, the specific regulations and laws applicable to the region, and any additional provisions negotiated between the operator and the nonparticipating royalty owners.
