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.
Iowa Shut-In Gas Royalty refers to the payment received by landowners or mineral rights owners in Iowa when their natural gas production is temporarily halted due to unforeseen circumstances or economic reasons. This type of royalty is granted to compensate for the potential loss of income during the shut-in period. The shut-in gas royalty in Iowa applies to various situations, including: 1. Economic shut-ins: When the price of natural gas falls below a certain threshold, it may not be financially viable for operators to continue production. In such cases, they may choose to temporarily shut-in gas wells until prices improve. 2. Regulatory shut-ins: Environmental or regulatory issues may require the temporary suspension of gas production. For example, if a well fails to meet certain safety standards, it may be shut-in until necessary modifications are made. 3. Mechanical shut-ins: Equipment failures, maintenance, or repairs can result in the temporary closure of gas wells, especially in cases where safety or operational integrity is at stake. 4. Force majeure shut-ins: Unforeseen events such as natural disasters, severe weather, or acts of God can force the suspension of gas production for an indefinite period. Landowners or mineral rights owners who possess leases or agreements with gas exploration companies are typically entitled to receive shut-in gas royalty payments. These royalties are often calculated based on a percentage of the market value of the gas that would have been produced during the shut-in period. Overall, Iowa Shut-In Gas Royalty compensates for the potential loss of income that landowners or mineral rights owners may experience when gas production is temporarily halted due to economic or unforeseen circumstances.
