Los Angeles is a vibrant city located in southern California and is the second most populous city in the United States. It is known for its stunning beaches, bustling entertainment industry, and diverse cultural scene. With its iconic landmarks like the Hollywood sign, Walk of Fame, and Universal Studios, Los Angeles is often referred to as the entertainment capital of the world. In the realm of oil and gas leases, Los Angeles has its own specific stipulations governing the payment of nonparticipating royalty under segregated tracts covered by a single lease. This regulation is designed to ensure fair compensation for landowners who own tracts of land within a larger lease and are not actively participating in the extraction or production of oil and gas. Under this stipulation, nonparticipating royalty owners are entitled to receive a portion of the royalties generated from the production of oil and gas on their respective tracts. These tracts are defined as separate and distinct sections of land within a larger lease, each owned by different individuals or entities. The purpose of this stipulation is to prevent a single leaseholder from monopolizing the entire royalty income generated from multiple tracts within a larger lease. By segregating the tracts, each landowner can benefit from the resources extracted and receive a fair share of the royalties based on their individual ownership. Some variations of this Los Angeles stipulation may include additional criteria or provisions depending on the specific circumstances or agreements between the leaseholders and nonparticipating royalty owners. These may encompass factors such as lease duration, royalty rates, minimum production thresholds, or dispute resolution mechanisms. Understanding and adhering to the stipulation governing the payment of nonparticipating royalties under segregated tracts is crucial for both leaseholders and nonparticipating royalty owners in Los Angeles. It ensures fair compensation and promotes equitable distribution of wealth in the oil and gas industry, while also recognizing and respecting the rights of landowners within a larger lease.