Collin Texas Stipulation Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• County: Collin
• Control #: US-OG-622
• Format: Word; Rich Text

Description

This form is used when the parties own nonparticipating royalty interests in various tracts of land. The Lease covers all of the lands owned by the parties. 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 Stipulation to stipulate and agree to the ownership of each party's respective share of the royalty reserved in the lease. Collin Texas Stipulation Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a legal provision that addresses the payment of nonparticipating royalties in the context of oil and gas leases in Collin County, Texas. This stipulation is designed to ensure fair and equitable distribution of royalties for owners of segregated tracts within a larger leased area. Under this stipulation, nonparticipating royalty owners are individuals or entities who do not hold a working interest in the leased property but are entitled to a share of the royalties generated from the extraction and production of oil and gas. These royalty owners typically hold a mineral interest in the property and receive a predetermined percentage of the total proceeds from the sale of hydrocarbons. The Collin Texas Stipulation Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease establishes guidelines and procedures for determining and distributing these royalties among the nonparticipating interest owners. It ensures that each owner receives their fair share of the proceeds and prevents any potential disputes or unfair practices. This stipulation also addresses the specific treatment of segregated tracts covered by a single oil and gas lease. Segregated tracts are distinct portions of land within a larger leased area that may have different ownership or mineral interest holders. The stipulation outlines how the nonparticipating royalty payments will be calculated and allocated for each segregated tract, taking into account the size, location, and production potential of each tract. Different types of Collin Texas Stipulation Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease might include variations in the royalty percentage, payment frequency, and specific provisions for different types of mineral interests or tracts. For example, there could be separate stipulations for segregated tracts with different mineral rights holders or distinct stipulations for royalty payments from oil production versus gas production. Keywords: Collin Texas, stipulation, nonparticipating royalty, segregated tracts, oil and gas lease, payment, distribution, mineral interest, hydrocarbons, proceeds, guidelines, disputes, unfair practices, ownership, allocation, production potential, variations, frequency, provisions, mineral rights, oil production, gas production

Collin Texas Stipulation Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a legal provision that addresses the payment of nonparticipating royalties in the context of oil and gas leases in Collin County, Texas. This stipulation is designed to ensure fair and equitable distribution of royalties for owners of segregated tracts within a larger leased area. Under this stipulation, nonparticipating royalty owners are individuals or entities who do not hold a working interest in the leased property but are entitled to a share of the royalties generated from the extraction and production of oil and gas. These royalty owners typically hold a mineral interest in the property and receive a predetermined percentage of the total proceeds from the sale of hydrocarbons. The Collin Texas Stipulation Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease establishes guidelines and procedures for determining and distributing these royalties among the nonparticipating interest owners. It ensures that each owner receives their fair share of the proceeds and prevents any potential disputes or unfair practices. This stipulation also addresses the specific treatment of segregated tracts covered by a single oil and gas lease. Segregated tracts are distinct portions of land within a larger leased area that may have different ownership or mineral interest holders. The stipulation outlines how the nonparticipating royalty payments will be calculated and allocated for each segregated tract, taking into account the size, location, and production potential of each tract. Different types of Collin Texas Stipulation Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease might include variations in the royalty percentage, payment frequency, and specific provisions for different types of mineral interests or tracts. For example, there could be separate stipulations for segregated tracts with different mineral rights holders or distinct stipulations for royalty payments from oil production versus gas production. Keywords: Collin Texas, stipulation, nonparticipating royalty, segregated tracts, oil and gas lease, payment, distribution, mineral interest, hydrocarbons, proceeds, guidelines, disputes, unfair practices, ownership, allocation, production potential, variations, frequency, provisions, mineral rights, oil production, gas production