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 Diego California Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease refers to a legal document that outlines the terms and conditions for the payment of nonparticipating royalties in relation to segregated tracts covered by a single oil and gas lease in San Diego, California. This agreement establishes the rights and obligations of the parties involved in the extraction and production of oil and gas from these specified tracts. Keywords: San Diego California, agreement, governing, payment, nonparticipating royalty, segregated tracts, oil and gas lease. There may be several types of this agreement governing the payment of nonparticipating royalty under segregated tracts covered by one oil and gas lease in San Diego, California, depending on specific circumstances and stakeholder preferences. Some potential variations or subtypes could include: 1. Overriding Royalty Agreement: This agreement focuses on the payment of nonparticipating royalties to parties who hold an overriding royalty interest in the segregated tracts covered by the oil and gas lease. The terms and percentage of these royalties are typically negotiated between the overriding royalty interest holders and the lessee. 2. Net Profits Interest Agreement: In this type of agreement, nonparticipating royalty payments are determined based on the net profits derived from the production and sale of oil and gas from the segregated tracts. The net profits interest holders receive a predetermined percentage of the net profits, which may be subject to adjustments and specific conditions outlined in the agreement. 3. Enhanced Recovery Agreement: This agreement governs the payment of nonparticipating royalties in the context of enhanced oil and gas recovery techniques applied to the segregated tracts. Enhanced recovery methods, such as thermal, chemical, or gas injection, aim to maximize production and may require specific provisions regarding nonparticipating royalty payments. 4. Unitization Agreement: This agreement, commonly used when several leases in a defined area are combined into a unit, establishes the framework for the payment of nonparticipating royalties under the consolidated operation. This agreement ensures the fair distribution of proceeds from the unit's production among all the leaseholders, including those with nonparticipating royalty interests. In all these variations, the San Diego California Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease serves as a legally binding document that safeguards the rights and interests of all parties involved in the extraction, production, and distribution of oil and gas resources in the specified area.The San Diego California Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease refers to a legal document that outlines the terms and conditions for the payment of nonparticipating royalties in relation to segregated tracts covered by a single oil and gas lease in San Diego, California. This agreement establishes the rights and obligations of the parties involved in the extraction and production of oil and gas from these specified tracts. Keywords: San Diego California, agreement, governing, payment, nonparticipating royalty, segregated tracts, oil and gas lease. There may be several types of this agreement governing the payment of nonparticipating royalty under segregated tracts covered by one oil and gas lease in San Diego, California, depending on specific circumstances and stakeholder preferences. Some potential variations or subtypes could include: 1. Overriding Royalty Agreement: This agreement focuses on the payment of nonparticipating royalties to parties who hold an overriding royalty interest in the segregated tracts covered by the oil and gas lease. The terms and percentage of these royalties are typically negotiated between the overriding royalty interest holders and the lessee. 2. Net Profits Interest Agreement: In this type of agreement, nonparticipating royalty payments are determined based on the net profits derived from the production and sale of oil and gas from the segregated tracts. The net profits interest holders receive a predetermined percentage of the net profits, which may be subject to adjustments and specific conditions outlined in the agreement. 3. Enhanced Recovery Agreement: This agreement governs the payment of nonparticipating royalties in the context of enhanced oil and gas recovery techniques applied to the segregated tracts. Enhanced recovery methods, such as thermal, chemical, or gas injection, aim to maximize production and may require specific provisions regarding nonparticipating royalty payments. 4. Unitization Agreement: This agreement, commonly used when several leases in a defined area are combined into a unit, establishes the framework for the payment of nonparticipating royalties under the consolidated operation. This agreement ensures the fair distribution of proceeds from the unit's production among all the leaseholders, including those with nonparticipating royalty interests. In all these variations, the San Diego California Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease serves as a legally binding document that safeguards the rights and interests of all parties involved in the extraction, production, and distribution of oil and gas resources in the specified area.
