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.
Georgia Reservation of Additional Interests in Production (GA-RAI) is a legal provision that grants certain stakeholders the right to reserve additional interests in oil and gas production on specified properties or leases in the state of Georgia. This mechanism allows for the protection of additional interests in oil, gas, or mineral rights. Keywords: Georgia Reservation of Additional Interests in Production, GA-RAI, oil and gas production, stakeholders, legal provision, properties, leases, protection, additional interests, oil rights, gas rights, mineral rights. There are different types of Georgia Reservation of Additional Interests in Production, namely: 1. Working Interest (WI): This refers to the ownership interest in an oil or gas lease, granting the holder the right to participate in the exploration, development, and production activities. The holder of the working interest bears the costs and risks associated with these activities but also enjoys a share of the produced hydrocarbons. 2. Overriding Royalty Interest (ORRIS): An ORRIS is a non-operating interest that entitles the holder to a percentage of the total production from a lease or property. The ORRIS is carved out of the working interest and does not bear any costs or risks associated with exploration and production. 3. Net Profits Interest (NPI): NPI is a non-operating interest that grants the holder a specified percentage of the net profits generated from a lease or property. Net profits refer to the revenues derived from sales after deducting operating expenses and royalties. 4. Production Payment (PP): A PP is a right to receive a specific, predetermined portion of the revenues generated from oil or gas production. It is usually limited to a certain period or until a predetermined total sum has been received. These different types of additional interests in production allow stakeholders in Georgia to diversify their investments, secure sources of income, and participate in the growth potential of oil, gas, and mineral resources within the state. The Georgia Reservation of Additional Interests in Production framework ensures that the rights of all stakeholders are protected and that potential disputes are resolved equitably.
