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.
The Indiana Reservation of Additional Interests in Production is a legal concept that refers to the rights and interests that may be reserved by the owner of a property when granting a lease or conveyance of mineral rights for production purposes. This reservation allows the property owner to retain certain additional interests and benefits from the production activities taking place on their property. There are two main types of Indiana Reservation of Additional Interests in Production: 1. Overriding Royalty Interest (ORRIS): This type of reservation grants the property owner a certain percentage or fraction of the production revenues generated from the property, in addition to any other royalties or payments already agreed upon. The ORRIS is usually expressed as a fraction or percentage of the total production, and it is often a non-operating interest, meaning the property owner doesn't have any control over the operations but is entitled to a share of the revenues. 2. Royalty Interest (RI): The RI is another type of reservation that allows the property owner to retain a certain share or percentage of the total production as a royalty payment. Unlike an ORRIS, the RI is usually specified in the original lease agreement or conveyance document and is not subject to negotiation or adjustment. The royalty payment is typically a percentage of the market value or proceeds from the sale of the produced minerals. The Indiana Reservation of Additional Interests in Production plays a crucial role in ensuring that property owners retain a stake in the economic benefits derived from the extraction and production of minerals on their land. By reserving an ORRIS or RI, property owners can secure a consistent stream of income even after leasing or transferring their mineral rights to a third party. It is important to note that the specific terms and conditions of an Indiana Reservation of Additional Interests in Production may vary depending on the individual lease or conveyance agreement, as well as state regulations. Property owners should carefully review and negotiate the terms of any reservation to ensure their interests are adequately protected. In summary, the Indiana Reservation of Additional Interests in Production allows property owners to reserve a share of the production revenues or royalties when granting mineral rights for production purposes. This reservation can take the form of an Overriding Royalty Interest (ORRIS) or a Royalty Interest (RI), ensuring that property owners continue to benefit economically from the production activities on their land.
