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 Suffolk New York Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a legal framework that outlines the terms and conditions for the distribution of nonparticipating royalties in Suffolk, New York. This agreement applies specifically to situations where multiple tracts of land are covered by a single oil and gas lease. Under this agreement, nonparticipating royalty owners who hold rights to segregated tracts share in the revenues generated from oil and gas production. The agreement ensures fair and equitable distribution of royalties among all parties involved. Some examples of different types of Suffolk New York Agreements Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease include: 1. Standard Agreement: This is the most common type of agreement, where the terms and conditions are predetermined and agreed upon by all parties. It sets out the specific percentages or fractions of royalties due to each nonparticipating royalty owner based on their landholdings. 2. Customized Agreement: In certain cases, nonparticipating royalty owners may negotiate their own unique terms within the boundaries of the overall agreement. This allows for flexibility to account for specific circumstances or preferences. 3. Consolidated Agreement: When there are numerous nonparticipating royalty owners with interests in segregated tracts, a consolidated agreement may be established. This agreement combines the interests of multiple owners and simplifies the royalty distribution process. The Suffolk New York Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is crucial in ensuring that all parties involved receive their fair share of royalties from oil and gas production. It provides a clear and transparent framework for royalty distribution, promoting harmonious relationships between landowners and energy companies operating in Suffolk, New York.
