This form is used to resolve any question as to how royalty is to be paid to the Parties in the event of production, under the Lease, on any part of the Lands. The Parties are entering into this Agreement to stipulate and agree to the ownership of each Party's respective share of the royalty reserved in the Lease payable for production attributable to their Interests from a well located anywhere on the Lands.
The Arkansas Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a legal document that outlines the terms and conditions related to the payment of nonparticipating royalties for segregated tracts under a single oil and gas lease in Arkansas. Keywords: Arkansas, agreement, governing, payment, nonparticipating royalty, segregated tracts, oil and gas lease. This agreement is crucial for the effective management and distribution of royalties for nonparticipating interests in the oil and gas production from segregated tracts. It ensures transparency, fairness, and compliance with applicable laws and regulations. Under the Arkansas Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease, several types can be identified, including: 1. Standard Agreement: The standard agreement sets forth the general terms, obligations, and procedures for the payment of nonparticipating royalties across segregated tracts under a single oil and gas lease. 2. Segregation Clause: This type of agreement includes specific clauses that define the process of segregating tracts and establishing separate accounts for nonparticipating royalties. 3. Royalty Calculation Method: Different agreements might detail specific formulas or methods used to calculate the nonparticipating royalty payments, considering factors such as production levels, commodity prices, and deductions, to ensure accuracy and consistency. 4. Reporting and Auditing Provisions: Some agreements may include provisions outlining reporting requirements for operators, periodic audits of production and payment records, and dispute resolution mechanisms to address any discrepancies or concerns. 5. Obligations of the Parties: These agreements would specify the responsibilities and obligations of both the operator and the nonparticipating royalty owner, clarifying deadlines for payment, royalty statements, and the resolution of any disputes that may arise. 6. Lease Termination and Assignment: Certain agreements may address the procedures and implications of lease termination or assignment, ensuring the continuity of nonparticipating royalty payments in case of any change in lease ownership or expiry. The Arkansas Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease provides a framework that safeguards the rights and interests of nonparticipating royalty owners while promoting efficient operations and accurate royalty payments in the state of Arkansas.
