Wake North Carolina 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: Wake
• 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. The Wake North Carolina Stipulation Governing Payment of Nonparticipating Royalty under Segregated Tracts Covered by one Oil and Gas Lease is a legal provision that pertains to the distribution of royalty payments in Wake County, North Carolina, for oil and gas production. This stipulation is essential for ensuring fair compensation to nonparticipating royalty interest owners whose land falls within a larger tract covered by a single oil and gas lease. The governing stipulation in Wake County establishes the protocol through which the nonparticipating royalty owners are entitled to receive their fair share of the royalties generated from the oil and gas extraction on the segregated tracts. By segregating the tracts covered by the lease, the stipulation allows for the calculation and distribution of royalties based on the specific production from each section of land. Different types of the Wake North Carolina Stipulation Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease may include the following: 1. Allocation Methodology: This type of stipulation outlines the specific method used to determine the proportionate share of royalties owed to each nonparticipating royalty interest owner. It may involve factors such as the acreage of the segregated tract, production rates, or other relevant considerations. 2. Payment Schedule: This stipulation sets forth the schedule for distributing the royalty payments to the nonparticipating royalty interest owners. It may specify the frequency of payments, such as monthly, quarterly, or annually, and provide details on the form and method of payment. 3. Royalty Calculation: This type of stipulation governs the formula or methodology employed to calculate the actual amount of royalty owed to each nonparticipating interest owner. It may consider factors such as production volume, market prices, and any applicable deductions or adjustments. 4. Record-Keeping and Auditing: This stipulation outlines the requirements and obligations of the lessee in terms of maintaining accurate records related to the production and distribution of royalties. It may also provide nonparticipating royalty interest owners with the right to audit the lease operator's records to verify the accuracy of royalty calculations and payments. 5. Dispute Resolution: In case of disputes or disagreements regarding royalty payments or any other aspects covered by the stipulation, this provision establishes the process for resolving such issues. It may outline procedures for negotiation, mediation, or arbitration to arrive at a fair resolution. The Wake North Carolina Stipulation Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is designed to protect the rights and interests of nonparticipating royalty owners while facilitating the efficient and equitable distribution of royalty payments in Wake County.

The Wake North Carolina Stipulation Governing Payment of Nonparticipating Royalty under Segregated Tracts Covered by one Oil and Gas Lease is a legal provision that pertains to the distribution of royalty payments in Wake County, North Carolina, for oil and gas production. This stipulation is essential for ensuring fair compensation to nonparticipating royalty interest owners whose land falls within a larger tract covered by a single oil and gas lease. The governing stipulation in Wake County establishes the protocol through which the nonparticipating royalty owners are entitled to receive their fair share of the royalties generated from the oil and gas extraction on the segregated tracts. By segregating the tracts covered by the lease, the stipulation allows for the calculation and distribution of royalties based on the specific production from each section of land. Different types of the Wake North Carolina Stipulation Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease may include the following: 1. Allocation Methodology: This type of stipulation outlines the specific method used to determine the proportionate share of royalties owed to each nonparticipating royalty interest owner. It may involve factors such as the acreage of the segregated tract, production rates, or other relevant considerations. 2. Payment Schedule: This stipulation sets forth the schedule for distributing the royalty payments to the nonparticipating royalty interest owners. It may specify the frequency of payments, such as monthly, quarterly, or annually, and provide details on the form and method of payment. 3. Royalty Calculation: This type of stipulation governs the formula or methodology employed to calculate the actual amount of royalty owed to each nonparticipating interest owner. It may consider factors such as production volume, market prices, and any applicable deductions or adjustments. 4. Record-Keeping and Auditing: This stipulation outlines the requirements and obligations of the lessee in terms of maintaining accurate records related to the production and distribution of royalties. It may also provide nonparticipating royalty interest owners with the right to audit the lease operator's records to verify the accuracy of royalty calculations and payments. 5. Dispute Resolution: In case of disputes or disagreements regarding royalty payments or any other aspects covered by the stipulation, this provision establishes the process for resolving such issues. It may outline procedures for negotiation, mediation, or arbitration to arrive at a fair resolution. The Wake North Carolina Stipulation Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is designed to protect the rights and interests of nonparticipating royalty owners while facilitating the efficient and equitable distribution of royalty payments in Wake County.