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.
San Bernardino California Shut-In Gas Royalty refers to the financial compensation received by mineral rights owners in San Bernardino, California when their gas wells are temporarily shut-in or unable to produce due to technical or economic constraints. This compensation is typically calculated based on the quantity and quality of the gas reserves present on the property. In San Bernardino, California, there are two primary types of shut-in gas royalties: 1. Standard Shut-In Gas Royalty: This type of royalty is applicable when gas production from a well is temporarily halted due to technical issues, such as mechanical breakdowns, pipeline repairs, or well maintenance. The shut-in period typically lasts until the issue is resolved, and during this time, the mineral rights' owner receives compensation based on the agreed-upon royalty rate. 2. Economic Shut-In Gas Royalty: Economic shut-in occurs when gas prices fall below a certain threshold, making it uneconomical for operators to continue production. In these cases, the operator may shut in the gas well until gas prices rise to a profitable level. Mineral rights owners are compensated during this period based on the royalty rate established in their lease agreements. Keywords: San Bernardino, California, Shut-In Gas Royalty, gas wells, financial compensation, mineral rights owners, temporarily shut-in, gas reserves, technical constraints, economic constraints, gas production, mechanical breakdowns, pipeline repairs, well maintenance, royalty rate, economic shut-in, gas prices, profitable level, lease agreements.
