Pima Arizona Commingling and Entirety Agreement By Royalty Owners where Royalty Ownership Varies in Lands Subject to Lease

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• County: Pima
• Control #: US-OG-621
• Format: Word; Rich Text

Description

It is not uncommon to encounter a situation where a mineral owner owns all the mineral estate in a tract of land, but the royalty interest in that tract has been divided and conveyed to a number of parties; i.e., the royalty ownership is not common in the entire tract. If a lease is granted by the mineral owner on the entire tract, and the lessee intends to develop the entire tract as a producing unit, the royalty owners may desire to enter into an agreement providing for all royalty owners in the tract in production royalty, regardless of where the well is actually located on the tract. This form of agreement accomplishes this objective. Lima Arizona Commingling and Entirety Agreement By Royalty Owners is a legal agreement that governs the pooling and combining of royalty ownership in lands subject to lease. This agreement is specifically designed to address situations where ownership of royalty interests varies among different lands enclosed within the lease boundaries. In Lima, Arizona, there are two main types of Commingling and Entirety Agreements utilized by royalty owners in such cases: 1. Lima Arizona Commingling Agreement: This type of agreement allows for the voluntary commingling of royalty interests by multiple owners in the same lease area. It enables the pooling of their individual interests, regardless of the variance in ownership percentages across different lands within the lease. By signing this agreement, the participating royalty owners agree to proportionally share the resulting combined income derived from the lease. 2. Lima Arizona Entitlement Agreement: In cases where there is significant variance in royalty ownership across different lands within the lease, an Entitlement Agreement is used. This agreement establishes a framework for dividing the royalty income based on the respective ownership percentages of each specific land. It provides a structure to ensure that each royalty owner receives their entitled share of the income based on their ownership interest in the individual lands within the lease. By implementing either a Commingling Agreement or an Entitlement Agreement, royalty owners in Lima, Arizona can effectively manage and streamline their ownership interests in lands subject to lease. These agreements provide the necessary guidelines and procedures to ensure fair distribution of income among all participating owners, regardless of the varying royalty ownership ratios across different lease areas.

Lima Arizona Commingling and Entirety Agreement By Royalty Owners is a legal agreement that governs the pooling and combining of royalty ownership in lands subject to lease. This agreement is specifically designed to address situations where ownership of royalty interests varies among different lands enclosed within the lease boundaries. In Lima, Arizona, there are two main types of Commingling and Entirety Agreements utilized by royalty owners in such cases: 1. Lima Arizona Commingling Agreement: This type of agreement allows for the voluntary commingling of royalty interests by multiple owners in the same lease area. It enables the pooling of their individual interests, regardless of the variance in ownership percentages across different lands within the lease. By signing this agreement, the participating royalty owners agree to proportionally share the resulting combined income derived from the lease. 2. Lima Arizona Entitlement Agreement: In cases where there is significant variance in royalty ownership across different lands within the lease, an Entitlement Agreement is used. This agreement establishes a framework for dividing the royalty income based on the respective ownership percentages of each specific land. It provides a structure to ensure that each royalty owner receives their entitled share of the income based on their ownership interest in the individual lands within the lease. By implementing either a Commingling Agreement or an Entitlement Agreement, royalty owners in Lima, Arizona can effectively manage and streamline their ownership interests in lands subject to lease. These agreements provide the necessary guidelines and procedures to ensure fair distribution of income among all participating owners, regardless of the varying royalty ownership ratios across different lease areas.