Nassau New York 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: Nassau
• 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. Nassau, New York, is a county located on Long Island, just outside of New York City. Within this county, there is a specific legal stipulation governing the payment of nonparticipating royalty under segregated tracts covered by a single oil and gas lease. This stipulation is designed to regulate the distribution of royalties to landowners who do not actively participate in the extraction or development of oil and gas resources on their property. One type of Nassau, New York, stipulation governing the payment of nonparticipating royalty under segregated tracts covered by one oil and gas lease is known as the "Proportional Allocation" method. This method distributes royalty payments based on the percentage of the total acreage owned by each nonparticipating landowner. The allocation is calculated by dividing the acreage of each nonparticipating tract by the total acreage of all nonparticipating tracts covered by the lease. Another type of stipulation is the "Flat Rate" method, which distributes a fixed amount of royalty payment equally among all nonparticipating landowners. This approach is often simpler to administer, as it eliminates the need for complex calculations based on acreage. Furthermore, there may be variations or modifications to these stipulations depending on the specific contractual agreements between the oil and gas company and the nonparticipating landowners. These variations might include specific provisions related to the timeframe and frequency of royalty payments, any deductions or adjustments for costs incurred in extraction or processing, and any conditions regarding the termination or renewal of the oil and gas lease. It is important for nonparticipating landowners in Nassau, New York, to carefully review the stipulation governing the payment of nonparticipating royalties under segregated tracts covered by one oil and gas lease. They should seek legal advice if needed to ensure that their interests are protected and that they receive fair and appropriate compensation for the use of their land for oil and gas extraction.

Nassau, New York, is a county located on Long Island, just outside of New York City. Within this county, there is a specific legal stipulation governing the payment of nonparticipating royalty under segregated tracts covered by a single oil and gas lease. This stipulation is designed to regulate the distribution of royalties to landowners who do not actively participate in the extraction or development of oil and gas resources on their property. One type of Nassau, New York, stipulation governing the payment of nonparticipating royalty under segregated tracts covered by one oil and gas lease is known as the "Proportional Allocation" method. This method distributes royalty payments based on the percentage of the total acreage owned by each nonparticipating landowner. The allocation is calculated by dividing the acreage of each nonparticipating tract by the total acreage of all nonparticipating tracts covered by the lease. Another type of stipulation is the "Flat Rate" method, which distributes a fixed amount of royalty payment equally among all nonparticipating landowners. This approach is often simpler to administer, as it eliminates the need for complex calculations based on acreage. Furthermore, there may be variations or modifications to these stipulations depending on the specific contractual agreements between the oil and gas company and the nonparticipating landowners. These variations might include specific provisions related to the timeframe and frequency of royalty payments, any deductions or adjustments for costs incurred in extraction or processing, and any conditions regarding the termination or renewal of the oil and gas lease. It is important for nonparticipating landowners in Nassau, New York, to carefully review the stipulation governing the payment of nonparticipating royalties under segregated tracts covered by one oil and gas lease. They should seek legal advice if needed to ensure that their interests are protected and that they receive fair and appropriate compensation for the use of their land for oil and gas extraction.