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.
Arkansas Minimum Royalty Payments refer to the minimum amount of royalties that must be paid to landowners by operators conducting oil and gas operations on their properties in the state of Arkansas. These payments ensure that landowners receive a fair share of the proceeds from the extraction and production of oil and gas resources. The Arkansas Minimum Royalty Payments are governed by the Arkansas Oil and Gas Commission and are primarily aimed at protecting the rights and interests of landowners. The Commission has established guidelines and regulations to ensure that minimum royalty payments are accurate and transparent. There are two main types of Arkansas Minimum Royalty Payments: 1. Statutory Minimum Royalty Payments: These are the minimum royalty rates set by the Arkansas Oil and Gas Commission, which operators are legally bound to pay to landowners. The current statutory minimum royalty rate in Arkansas is typically 12.5% of the gross value of oil and gas production. 2. Lease-specific Minimum Royalty Payments: In addition to the statutory minimum royalty payments, there may be lease-specific agreements between landowners and operators that establish a higher minimum royalty rate. These agreements can be negotiated during the leasing process, allowing landowners to secure a more favorable royalty payment based on their property's unique characteristics and potential. It is important to note that the actual royalty payments made to landowners can surpass the minimum requirements, depending on the terms negotiated in individual lease agreements. Landowners are encouraged to seek legal counsel and carefully review lease agreements to ensure they are receiving fair compensation for the use of their land. In conclusion, Arkansas Minimum Royalty Payments are minimum amounts of royalties that operators are required to pay landowners for the extraction of oil and gas on their properties. By establishing transparency and fairness in these payments, the Arkansas Oil and Gas Commission aims to protect the interests of landowners and ensure a mutually beneficial relationship between landowners and operators.
