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.
Lima Arizona Shut-In Oil Royalty refers to a specific type of royalty interest associated with oil production in Pima County, Arizona. This shut-in royalty is a contractual agreement between the mineral rights owner and the oil company, where the oil operation is temporarily halted due to certain circumstances, such as low oil prices, equipment malfunction, or natural disasters. Shut-in royalties are a crucial part of the oil and gas industry, allowing both parties to mitigate risks and protect their investments. In the case of Lima Arizona Shut-In Oil Royalty, it specifically pertains to oil wells located in the Pima County region of Arizona. Pima County, situated in the southeastern part of Arizona, boasts rich oil and gas reserves. The region becomes significant for shut-in royalties due to its potential for oil exploration and production. The shut-in royalty arrangement ensures that oil companies can cease operations temporarily without losing their drilling rights. At the same time, mineral rights owners receive compensation for the suspension of oil extraction during the shut-in period. These royalties come in various forms, depending on the specific contractual agreement between the parties involved. Some common types of Lima Arizona Shut-In Oil Royalty can include: 1. Net Royalty Interest (NRI): This type of shut-in royalty entitles the mineral rights' owner to a portion of the total oil production, typically expressed as a percentage. 2. Overriding Royalty Interest (ORRIS): In this case, the shut-in royalty is a percentage of the total oil production, calculated after deducting the landowner's royalty interest. 3. Deferred Royalty: Here, the shut-in oil royalty is temporarily deferred and accrued until the oil operations resume. 4. Cost-Free Royalty: This type of shut-in royalty entitles the mineral rights' owner to a share of oil production without any deductions or associated expenses. It's important to note that the specific terms and conditions of Lima Arizona Shut-In Oil Royalty can vary from agreement to agreement. These agreements are typically negotiated between the oil company and the mineral rights owner and may depend on factors such as the current market conditions, land value, and the duration of the shut-in period. Overall, Lima Arizona Shut-In Oil Royalty serves as a crucial mechanism to protect the interests of both the oil company and mineral rights owners in the region.Lima Arizona Shut-In Oil Royalty refers to a specific type of royalty interest associated with oil production in Pima County, Arizona. This shut-in royalty is a contractual agreement between the mineral rights owner and the oil company, where the oil operation is temporarily halted due to certain circumstances, such as low oil prices, equipment malfunction, or natural disasters. Shut-in royalties are a crucial part of the oil and gas industry, allowing both parties to mitigate risks and protect their investments. In the case of Lima Arizona Shut-In Oil Royalty, it specifically pertains to oil wells located in the Pima County region of Arizona. Pima County, situated in the southeastern part of Arizona, boasts rich oil and gas reserves. The region becomes significant for shut-in royalties due to its potential for oil exploration and production. The shut-in royalty arrangement ensures that oil companies can cease operations temporarily without losing their drilling rights. At the same time, mineral rights owners receive compensation for the suspension of oil extraction during the shut-in period. These royalties come in various forms, depending on the specific contractual agreement between the parties involved. Some common types of Lima Arizona Shut-In Oil Royalty can include: 1. Net Royalty Interest (NRI): This type of shut-in royalty entitles the mineral rights' owner to a portion of the total oil production, typically expressed as a percentage. 2. Overriding Royalty Interest (ORRIS): In this case, the shut-in royalty is a percentage of the total oil production, calculated after deducting the landowner's royalty interest. 3. Deferred Royalty: Here, the shut-in oil royalty is temporarily deferred and accrued until the oil operations resume. 4. Cost-Free Royalty: This type of shut-in royalty entitles the mineral rights' owner to a share of oil production without any deductions or associated expenses. It's important to note that the specific terms and conditions of Lima Arizona Shut-In Oil Royalty can vary from agreement to agreement. These agreements are typically negotiated between the oil company and the mineral rights owner and may depend on factors such as the current market conditions, land value, and the duration of the shut-in period. Overall, Lima Arizona Shut-In Oil Royalty serves as a crucial mechanism to protect the interests of both the oil company and mineral rights owners in the region.
