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.
Oakland Michigan Shut-In Gas Royalty refers to a type of gas royalty payment received by landowners or mineral rights owners in the Oakland County, Michigan region for temporarily shutting down gas wells. This process involves stopping the production and extraction of natural gas from wells due to various reasons, such as low gas prices, inadequate infrastructure, or market conditions. Shut-in gas royalties are commonly paid to compensate landowners for the potential loss of income resulting from temporarily ceasing gas production. In Oakland County, Michigan, this practice ensures that landowners are fairly compensated for the suspension of gas well operations. There are different types of shut-in gas royalties that exist in Oakland County, Michigan, which include: 1. Temporary Shut-In Royalty: This type of royalty is paid to landowners when gas wells are temporarily shut down due to factors such as maintenance, repairs, or testing. Operators might choose to shut in wells to ensure proper equipment functioning or to evaluate the productivity of the well before resuming operations. They are compensated for this temporary interruption in production. 2. Economic Shut-In Royalty: Economic shut-in royalties are applicable when gas prices fall below a certain threshold, making it uneconomical to produce and sell natural gas. In such cases, well operators may choose to shut in wells until gas prices increase, allowing for profitable production again. Landowners receive compensation for the potential loss of income during this period. 3. Seasonal Shut-In Royalty: Seasonal shut-in royalties are specific to situations where gas wells are temporarily shut down during certain seasons or periods of the year. This could be due to adverse weather conditions that make production, transportation, or market access challenging or uneconomical. Compensation is provided to landowners for any loss of income during this seasonal shutdown. 4. Regulatory Shut-In Royalty: Regulatory shut-in royalties come into play when government regulations or permits require the temporary closure of gas wells. These shut-ins may occur due to environmental concerns, technical inspections, or compliance requirements. In these cases, landowners are entitled to receive compensation during the period when the gas wells remain inactive. It is important for landowners or mineral rights owners in Oakland County, Michigan, to have clear agreements in place with gas well operators regarding shut-in gas royalties. These agreements should outline the specific terms, conditions, and compensation rates associated with temporary well shutdowns, ensuring fair and mutually beneficial arrangements are established.Oakland Michigan Shut-In Gas Royalty refers to a type of gas royalty payment received by landowners or mineral rights owners in the Oakland County, Michigan region for temporarily shutting down gas wells. This process involves stopping the production and extraction of natural gas from wells due to various reasons, such as low gas prices, inadequate infrastructure, or market conditions. Shut-in gas royalties are commonly paid to compensate landowners for the potential loss of income resulting from temporarily ceasing gas production. In Oakland County, Michigan, this practice ensures that landowners are fairly compensated for the suspension of gas well operations. There are different types of shut-in gas royalties that exist in Oakland County, Michigan, which include: 1. Temporary Shut-In Royalty: This type of royalty is paid to landowners when gas wells are temporarily shut down due to factors such as maintenance, repairs, or testing. Operators might choose to shut in wells to ensure proper equipment functioning or to evaluate the productivity of the well before resuming operations. They are compensated for this temporary interruption in production. 2. Economic Shut-In Royalty: Economic shut-in royalties are applicable when gas prices fall below a certain threshold, making it uneconomical to produce and sell natural gas. In such cases, well operators may choose to shut in wells until gas prices increase, allowing for profitable production again. Landowners receive compensation for the potential loss of income during this period. 3. Seasonal Shut-In Royalty: Seasonal shut-in royalties are specific to situations where gas wells are temporarily shut down during certain seasons or periods of the year. This could be due to adverse weather conditions that make production, transportation, or market access challenging or uneconomical. Compensation is provided to landowners for any loss of income during this seasonal shutdown. 4. Regulatory Shut-In Royalty: Regulatory shut-in royalties come into play when government regulations or permits require the temporary closure of gas wells. These shut-ins may occur due to environmental concerns, technical inspections, or compliance requirements. In these cases, landowners are entitled to receive compensation during the period when the gas wells remain inactive. It is important for landowners or mineral rights owners in Oakland County, Michigan, to have clear agreements in place with gas well operators regarding shut-in gas royalties. These agreements should outline the specific terms, conditions, and compensation rates associated with temporary well shutdowns, ensuring fair and mutually beneficial arrangements are established.
