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.
Idaho Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease Idaho Agreement: The Idaho Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a legal contract that outlines the terms and conditions for the payment of nonparticipating royalties in relation to multiple segregated tracts covered by a single oil and gas lease in the state of Idaho. Nonparticipating Royalty: The nonparticipating royalty refers to the portion of the oil and gas lease payments owed to landowners who do not own the mineral rights but still hold a royalty interest in the production or extraction of oil and gas from the segregated tracts covered by the lease. Segregated Tracts: The segregated tracts covered by the oil and gas lease refer to specific portions of land that have been separated and designated for the purpose of oil and gas exploration and extraction. These tracts may vary in size, ownership, and geologic characteristics. Payment Structure: The Idaho Agreement outlines the payment structure for the nonparticipating royalty, which is typically a percentage of the gross proceeds derived from the sale of oil and gas produced from the segregated tracts. The exact percentage is determined through negotiation and may vary depending on various factors, such as the location, mineral rights ownership, and market conditions. Types of Idaho Agreements: While the specific types of Idaho Agreements Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease may vary, they generally serve a similar purpose. For example, an agreement might focus on the payment terms and obligations for the nonparticipating royalty interest holders related to a particular lease. Other agreements might address additional clauses, such as the allocation of costs and expenses, liability provisions, force majeure, or dispute resolution mechanisms. Compliance and Enforcement: The Idaho Agreement typically includes provisions related to compliance and enforcement to ensure that both the lessee (entity holding the oil and gas lease) and the nonparticipating royalty interest holders fulfill their obligations stipulated in the agreement. These provisions may detail the process for auditing and verifying gross proceeds, addressing disputes, and remedies for noncompliance. Legal Considerations: It is crucial for both the lessee and the nonparticipating royalty interest holders to seek legal advice when entering into an Idaho Agreement. Legal professionals specializing in oil and gas law can help draft, review, and negotiate the terms and conditions of the agreement to protect the interests of all parties involved. In summary, the Idaho Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a comprehensive contract defining the payment obligations and other relevant terms pertaining to nonparticipating royalty interest holders in relation to multiple segregated tracts covered by a single oil and gas lease in Idaho.
