Arkansas Ratification of Royalty Commingling Agreement

• Category: Oil Gas and Minerals - Ratification
• State: Multi-State
• Control #: US-OG-113
• Format: Word; Rich Text

Description

A commingling agreement may have been entered into allowing the parties to the agreement to share in royalty based on agreed upon percentages, typically where royalty is not common in all the lands included in a producing or unit around the well. If a party did not sign the original agreement, they may ratify the agreement. This will have the same effect as the ratifying party having executed the original or a counterpart of the agreement.

The Arkansas Ratification of Royalty Commingling Agreement is a legal document that serves to validate and legitimize the pooling and commingling of oil and gas royalties. This agreement allows multiple royalty interest owners to combine their respective interests, providing operational efficiencies and cost savings in managing and distributing royalty payments. By ratifying this agreement, all parties involved agree to the terms and conditions regarding the commingling of their royalty interests. This includes the sharing of income, expenses, taxes, and liabilities associated with the production and sale of oil and gas within the specified pool. The Arkansas Ratification of Royalty Commingling Agreement ensures fair and equitable distribution of royalties, minimizing potential disputes among the participating interest owners. In Arkansas, there are two main types of Ratification of Royalty Commingling Agreements: 1. Private Royalty Commingling Agreement: This agreement is entered into by private individuals or entities who are the owners of royalty interests in oil and gas leases. It allows them to voluntarily combine their interests in more efficient management and distribution of royalties. 2. State Approved Royalty Commingling Agreement: This agreement is subject to approval by the Arkansas Oil and Gas Commission. It requires the participation of multiple parties who hold royalty interests in state-owned or leased mineral rights. The purpose of this type of agreement is to facilitate the development and production of oil and gas resources in a coordinated and cost-effective manner. Keywords: Arkansas, Ratification of Royalty Commingling Agreement, oil and gas royalties, pooling, commingling, royalty interest owners, operational efficiencies, cost savings, managing and distributing payments, terms and conditions, income, expenses, taxes, liabilities, production, sale, fair distribution, disputes, private individuals, private entities, state-approved, Arkansas Oil and Gas Commission, state-owned mineral rights, oil and gas resources, development, production, coordinated, cost-effective.