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.
Connecticut Reservation of Additional Interests in Production is a legal provision that allows landowners to retain certain rights or interests related to oil and gas production on their property, even after leasing or selling the property to a third party. This reservation provides an opportunity for landowners to benefit from future production activities or potential discoveries on the land. The purpose of the Connecticut Reservation of Additional Interests in Production is to secure the landowner's entitlement to a percentage of the profits or revenue generated from the extraction or production of natural resources on their property. It serves as a safeguard against the possibility of losing out on potential gains or royalties from oil or gas activities. Under this provision, landowners can reserve specific interests or rights related to production activities, such as: 1. Royalty Interest: This allows the landowner to receive a percentage of the revenue generated from the sale of extracted resources. The royalty interest can be a fixed percentage or a sliding scale that varies based on production levels or market conditions. 2. Overriding Royalty Interest: In addition to the standard royalties, landowners can reserve an overriding royalty interest, which grants them an additional percentage of the production revenues. The overriding royalty interest is distinct from any royalties paid to the lessor of the land. 3. Working Interest: Landowners may choose to retain a working interest, which grants them the right to actively participate in the exploration, development, and production operations. This allows landowners to make decisions and potentially influence production activities, including sharing in the associated costs and risks. 4. Bonus Payments: In some cases, landowners can reserve the right to receive a one-time bonus payment upon the signing of an oil and gas lease. This payment is separate from any future royalties or interest in production. Connecticut Reservation of Additional Interests in Production is crucial for landowners who wish to maintain their stake in the potential economic benefits of oil and gas extraction. It safeguards their financial interests and ensures they can continue to benefit from the resources beneath their land even after transferring ownership or leasing the property.
