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.
Indiana Shut-In Gas Royalty refers to the monetary compensation received by gas royalty owners when their gas production is temporarily halted or "shut-in" due to certain circumstances. This shut-in status can arise due to issues like low market demand, pipeline constraints, adverse weather conditions, or equipment malfunction. The payment compensates the gas royalty owners for the inability to produce and sell the gas during the shut-in period. In Indiana, there are a few different types of Shut-In Gas Royalty, each with its own set of conditions and provisions. These include: 1. Economic Emergency Shut-In Gas Royalty: This type of shut-in royalty is triggered when the gas market experiences a significant downturn or when gas prices drop below a pre-determined threshold. It allows gas royalty owners to receive compensation to offset the loss of revenue during the emergency period. 2. Weather-Related Shut-In Gas Royalty: Adverse weather conditions, such as hurricanes, tornadoes, or severe storms, can cause interruptions in gas production and transportation. This type of shut-in royalty compensates royalty owners for their loss of gas proceeds during the shutdown caused by weather-related incidents. 3. Equipment Maintenance Shut-In Gas Royalty: To ensure proper functioning and safety of gas operations, periodic maintenance and repair of equipment are necessary. During such scheduled shutdowns, gas royalty owners are entitled to receive shut-in royalties to compensate for the temporary cessation of gas production. 4. Pipeline Constraints Shut-In Gas Royalty: In cases where gas infrastructure, particularly pipelines, experiences limitations or restrictions, gas producers might have to shut-in their wells temporarily. Royalty owners are then eligible for shut-in royalties until the pipeline conditions are resolved and normal production resumes. It is important for gas royalty owners in Indiana to monitor the specific conditions of their royalty agreements and consult legal experts or industry professionals to understand the terms, eligibility criteria, and payment procedures associated with Indiana Shut-In Gas Royalty. Additionally, staying updated on market trends, weather patterns, and pipeline developments can help in managing shut-in periods and optimizing compensation.
