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 San Antonio Texas Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a legal contract that outlines the terms and conditions regarding the payment of nonparticipating royalties for specific tracts of land covered by a single oil and gas lease in the San Antonio, Texas area. This agreement is crucial for efficiently managing the distribution of royalties to nonparticipating owners of the segregated tracts. It ensures that each owner receives their fair share of the royalties derived from the oil and gas resources extracted from their respective tracts. The agreement also establishes clear guidelines for payment calculations, schedule, and other important administrative processes. The San Antonio Texas Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease may encompass different types, including: 1. Standard Agreement: This is the most common type of agreement used for nonparticipating royalty payments. It outlines the general terms and conditions applicable to the specific tracts covered by the oil and gas lease. 2. Customized Agreement: In certain cases, parties involved may opt for a customized agreement tailored to their specific requirements. This allows for greater flexibility in terms of payment schedules, bonus calculations, or other specific clauses as deemed necessary. 3. Unit Agreement: This type of agreement is applicable when multiple segregated tracts are collectively managed as a unit. It establishes a comprehensive framework for the payment of nonparticipating royalties from all tracts within the unit, taking into consideration the proportionate ownership of each nonparticipating owner. 4. Supplementary Agreement: Occasionally, supplementary agreements may be required to address any modifications, amendments, or additional terms that arise during the course of the initial agreement. These supplementary agreements ensure that any changes or specific requirements are properly documented and integrated into the existing agreement. In summary, the San Antonio Texas Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease facilitates the systematic and fair distribution of nonparticipating royalties among owners of segregated tracts. While there may be different types of agreements based on specific circumstances, the underlying goal remains the same — to ensure that all nonparticipating owners receive their rightful share of royalties from the oil and gas operations conducted on their respective tracts.The San Antonio Texas Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a legal contract that outlines the terms and conditions regarding the payment of nonparticipating royalties for specific tracts of land covered by a single oil and gas lease in the San Antonio, Texas area. This agreement is crucial for efficiently managing the distribution of royalties to nonparticipating owners of the segregated tracts. It ensures that each owner receives their fair share of the royalties derived from the oil and gas resources extracted from their respective tracts. The agreement also establishes clear guidelines for payment calculations, schedule, and other important administrative processes. The San Antonio Texas Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease may encompass different types, including: 1. Standard Agreement: This is the most common type of agreement used for nonparticipating royalty payments. It outlines the general terms and conditions applicable to the specific tracts covered by the oil and gas lease. 2. Customized Agreement: In certain cases, parties involved may opt for a customized agreement tailored to their specific requirements. This allows for greater flexibility in terms of payment schedules, bonus calculations, or other specific clauses as deemed necessary. 3. Unit Agreement: This type of agreement is applicable when multiple segregated tracts are collectively managed as a unit. It establishes a comprehensive framework for the payment of nonparticipating royalties from all tracts within the unit, taking into consideration the proportionate ownership of each nonparticipating owner. 4. Supplementary Agreement: Occasionally, supplementary agreements may be required to address any modifications, amendments, or additional terms that arise during the course of the initial agreement. These supplementary agreements ensure that any changes or specific requirements are properly documented and integrated into the existing agreement. In summary, the San Antonio Texas Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease facilitates the systematic and fair distribution of nonparticipating royalties among owners of segregated tracts. While there may be different types of agreements based on specific circumstances, the underlying goal remains the same — to ensure that all nonparticipating owners receive their rightful share of royalties from the oil and gas operations conducted on their respective tracts.
