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.
Travis Texas Shut-In Gas Royalty is a legal agreement or provision that allows gas leaseholders in Travis County, Texas to temporarily halt the production of natural gas from their wells due to various reasons such as low gas prices, market conditions, operational limitations, or any unforeseen circumstances. It provides a mechanism for leaseholders to minimize losses during periods of profitability while maintaining their right to the gas reserves on their property. When Travis Texas gas leaseholders declare a shut-in royalty, they receive compensation from the gas purchaser or lessee for the revenue they would have earned if the gas had been produced and sold into the market. This royalty ensures that the leaseholders receive some monetary benefit without having to bear the full operational costs during a non-producing period. There are different types of Travis Texas Shut-In Gas Royalty arrangements based on specific scenarios and lease agreements: 1. Market Condition Shut-In Royalty: This type of royalty is activated when gas prices drop significantly below a certain threshold. It allows leaseholders to suspend production until the market conditions improve, enabling them to avoid incurring losses while waiting for favorable pricing. 2. Operational Limitation Shut-In Royalty: When leaseholders face challenge in accessing or maintaining necessary infrastructure for gas production and transportation, they can declare an operational shut-in royalty. This provides them with financial relief until the operational issues are resolved. 3. Force Mature Shut-In Royalty: This type of shut-in royalty is invoked in extraordinary cases of natural disasters, acts of God, civil unrest, or other events beyond the leaseholder's control. It safeguards leaseholders from potential losses during these uncontrollable circumstances. By implementing Travis Texas Shut-In Gas Royalty provisions, gas leaseholders can continue to hold valuable gas reserves for future production and exploration without bearing the full financial burden during challenging times. These arrangements not only protect their interests but also serve as a means of managing risk in the volatile energy market, ensuring gas leaseholders can sustain long-term profitability and viability.Travis Texas Shut-In Gas Royalty is a legal agreement or provision that allows gas leaseholders in Travis County, Texas to temporarily halt the production of natural gas from their wells due to various reasons such as low gas prices, market conditions, operational limitations, or any unforeseen circumstances. It provides a mechanism for leaseholders to minimize losses during periods of profitability while maintaining their right to the gas reserves on their property. When Travis Texas gas leaseholders declare a shut-in royalty, they receive compensation from the gas purchaser or lessee for the revenue they would have earned if the gas had been produced and sold into the market. This royalty ensures that the leaseholders receive some monetary benefit without having to bear the full operational costs during a non-producing period. There are different types of Travis Texas Shut-In Gas Royalty arrangements based on specific scenarios and lease agreements: 1. Market Condition Shut-In Royalty: This type of royalty is activated when gas prices drop significantly below a certain threshold. It allows leaseholders to suspend production until the market conditions improve, enabling them to avoid incurring losses while waiting for favorable pricing. 2. Operational Limitation Shut-In Royalty: When leaseholders face challenge in accessing or maintaining necessary infrastructure for gas production and transportation, they can declare an operational shut-in royalty. This provides them with financial relief until the operational issues are resolved. 3. Force Mature Shut-In Royalty: This type of shut-in royalty is invoked in extraordinary cases of natural disasters, acts of God, civil unrest, or other events beyond the leaseholder's control. It safeguards leaseholders from potential losses during these uncontrollable circumstances. By implementing Travis Texas Shut-In Gas Royalty provisions, gas leaseholders can continue to hold valuable gas reserves for future production and exploration without bearing the full financial burden during challenging times. These arrangements not only protect their interests but also serve as a means of managing risk in the volatile energy market, ensuring gas leaseholders can sustain long-term profitability and viability.
