This lease rider form may be used when you are involved in a lease transaction, and have made the decision to utilize the form of Oil and Gas Lease presented to you by the Lessee, and you want to include additional provisions to that Lease form to address specific concerns you may have, or place limitations on the rights granted the Lessee in the “standard” lease form.
Houston, Texas Reservation of Additional Interests in Production refers to a legal term used in the oil and gas industry. It involves setting aside a portion of a property's production revenue to be allocated to certain parties who have additional interests in the production. In Houston, Texas, there are various types of Reservation of Additional Interests in Production, including: 1. Overriding Royalty Interest (ORRIS): An ORRIS is a percentage of revenue from the sale of oil and gas that is reserved for a party other than the mineral rights' owner. It is typically granted to the original lessor or a third party, often in exchange for services provided or financial consideration. 2. Net Profits Interest (NPI): A NPI is similar to an ORRIS but is calculated based on the net profits derived from the production rather than the gross revenue. The NPI holder has a stake in the profitability after operating costs, taxes, and other deductions. 3. Production Payment (PP): A PP is a fixed monetary amount payable to a specific party out of the revenue generated by the production. It is often established as part of a contractual agreement or as compensation for the transfer of certain rights. 4. Working Interest (WI): Unlike the reserved interests mentioned above, a Working Interest represents an ownership stake in the actual operation and costs associated with oil and gas exploration and production activities. The working interest holder is responsible for a proportional share of all expenses and retains a corresponding percentage of the revenue. These various types of reservations allow parties with additional interests, excluding the mineral rights owners, to benefit from the production of oil and gas resources in Houston, Texas. Each type of interest carries unique rights, obligations, and potential returns, depending on the specific terms and conditions agreed upon in the contractual agreements.Houston, Texas Reservation of Additional Interests in Production refers to a legal term used in the oil and gas industry. It involves setting aside a portion of a property's production revenue to be allocated to certain parties who have additional interests in the production. In Houston, Texas, there are various types of Reservation of Additional Interests in Production, including: 1. Overriding Royalty Interest (ORRIS): An ORRIS is a percentage of revenue from the sale of oil and gas that is reserved for a party other than the mineral rights' owner. It is typically granted to the original lessor or a third party, often in exchange for services provided or financial consideration. 2. Net Profits Interest (NPI): A NPI is similar to an ORRIS but is calculated based on the net profits derived from the production rather than the gross revenue. The NPI holder has a stake in the profitability after operating costs, taxes, and other deductions. 3. Production Payment (PP): A PP is a fixed monetary amount payable to a specific party out of the revenue generated by the production. It is often established as part of a contractual agreement or as compensation for the transfer of certain rights. 4. Working Interest (WI): Unlike the reserved interests mentioned above, a Working Interest represents an ownership stake in the actual operation and costs associated with oil and gas exploration and production activities. The working interest holder is responsible for a proportional share of all expenses and retains a corresponding percentage of the revenue. These various types of reservations allow parties with additional interests, excluding the mineral rights owners, to benefit from the production of oil and gas resources in Houston, Texas. Each type of interest carries unique rights, obligations, and potential returns, depending on the specific terms and conditions agreed upon in the contractual agreements.
