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 Jose, California Shut-In Oil Royalty refers to a specific type of royalty interest received by individuals or entities who own oil-producing properties in the San Jose region of California. This type of royalty is related to the practice of shutting in oil wells, which means temporarily ceasing their production due to various reasons, such as low oil prices, operational issues, or market fluctuations. San Jose, located in the heart of Silicon Valley, is not typically associated with oil production. However, there are certain oil fields in the vicinity, such as the Santa Clara Oil Field, where oil extraction takes place. In these oil fields, some wells may be shut-in, resulting in the establishment of Shut-In Oil Royalties. These royalties are a form of compensation that owners of the oil wells receive from oil production companies. When a well is shut-in, the owner is entitled to a certain percentage of the oil production revenue even though no oil is being extracted. This is mainly to protect the interests of the owner who has invested in the oil well but is unable to generate income due to the temporary suspension of production. In San Jose, there are different types of Shut-In Oil Royalties that can be classified based on various factors: 1. Santa Clara Oil Field Shut-In Royalty: These royalties pertain to wells located specifically within the Santa Clara Oil Field, which is one of the primary oil-producing regions in the area. Owners of these shut-in wells may receive royalties from oil companies operating in this field. 2. Shut-In Oil Royalty Percentage: This refers to the percentage of revenue that owners receive from oil production companies when their wells are shut-in. The specific percentage can vary from one royalty agreement to another and is usually negotiated between the owner and the operating company. 3. Temporary Shut-In Royalty: This type of royalty is granted when a well undergoes a temporary shutdown due to short-term factors such as maintenance, repairs, or low oil prices. Once these issues are resolved, production may resume, and the shut-in royalty will cease. 4. Extended Shut-In Royalty: In certain cases, a well may experience an extended period of shut-in due to more significant challenges, such as geological difficulties or prolonged economic downturns. In these instances, the owner may receive a more extended shut-in royalty until the well becomes operational again. 5. San Jose Oil Royalty Trust: While not specific to shut-in wells, the San Jose Oil Royalty Trust is a financial vehicle that allows investors to participate in revenue generated by oil wells in the region, including potential shut-in royalties. In conclusion, San Jose, California Shut-In Oil Royalty represents a compensation mechanism for individuals or entities owning oil-producing properties in the San Jose area. It encompasses various types of royalties associated with temporarily halted oil extraction and includes different variations based on location, revenue percentage, and duration of the shut-in period.San Jose, California Shut-In Oil Royalty refers to a specific type of royalty interest received by individuals or entities who own oil-producing properties in the San Jose region of California. This type of royalty is related to the practice of shutting in oil wells, which means temporarily ceasing their production due to various reasons, such as low oil prices, operational issues, or market fluctuations. San Jose, located in the heart of Silicon Valley, is not typically associated with oil production. However, there are certain oil fields in the vicinity, such as the Santa Clara Oil Field, where oil extraction takes place. In these oil fields, some wells may be shut-in, resulting in the establishment of Shut-In Oil Royalties. These royalties are a form of compensation that owners of the oil wells receive from oil production companies. When a well is shut-in, the owner is entitled to a certain percentage of the oil production revenue even though no oil is being extracted. This is mainly to protect the interests of the owner who has invested in the oil well but is unable to generate income due to the temporary suspension of production. In San Jose, there are different types of Shut-In Oil Royalties that can be classified based on various factors: 1. Santa Clara Oil Field Shut-In Royalty: These royalties pertain to wells located specifically within the Santa Clara Oil Field, which is one of the primary oil-producing regions in the area. Owners of these shut-in wells may receive royalties from oil companies operating in this field. 2. Shut-In Oil Royalty Percentage: This refers to the percentage of revenue that owners receive from oil production companies when their wells are shut-in. The specific percentage can vary from one royalty agreement to another and is usually negotiated between the owner and the operating company. 3. Temporary Shut-In Royalty: This type of royalty is granted when a well undergoes a temporary shutdown due to short-term factors such as maintenance, repairs, or low oil prices. Once these issues are resolved, production may resume, and the shut-in royalty will cease. 4. Extended Shut-In Royalty: In certain cases, a well may experience an extended period of shut-in due to more significant challenges, such as geological difficulties or prolonged economic downturns. In these instances, the owner may receive a more extended shut-in royalty until the well becomes operational again. 5. San Jose Oil Royalty Trust: While not specific to shut-in wells, the San Jose Oil Royalty Trust is a financial vehicle that allows investors to participate in revenue generated by oil wells in the region, including potential shut-in royalties. In conclusion, San Jose, California Shut-In Oil Royalty represents a compensation mechanism for individuals or entities owning oil-producing properties in the San Jose area. It encompasses various types of royalties associated with temporarily halted oil extraction and includes different variations based on location, revenue percentage, and duration of the shut-in period.
