This form of release is used when Lessor releases, relinquishes, and quit claims to the present owners of the Lease all of a Production Payment interest. From and after the Effective Date, the Production Payment interest in the Lease is deemed to have terminated and is no longer a burden on the leasehold estate created by the Lease.
Kansas Release of Production Payment by Lessor is a legal document that outlines the terms and conditions for the release of production payment by the lessor to the lessee in the state of Kansas. This agreement is an essential aspect of any lease agreement involving the exploration or extraction of natural resources, such as oil, gas, or minerals, as it governs the distribution of profits between the parties involved. The Kansas Release of Production Payment by Lessor document typically includes important details, including the names and contact information of both the lessor and the lessee, the effective date of the agreement, and the specific terms and conditions for the release of production payments. It also outlines the percentage or portion of production revenue to be paid to the lessor. The release of production payment by the lessor can be structured in different ways depending on the agreed terms. Some common types of Kansas Release of Production Payment by Lessor are: 1. Fixed Percentage Agreement: This type of release of production payment establishes a predetermined fixed percentage of the total production revenue that the lessor is entitled to receive. For instance, if the agreed percentage is 20%, the lessor will receive 20% of the revenue derived from the production activities. 2. Rolling Percentage Agreement: In this type of release of production payment, the agreed percentage varies according to the production levels or market conditions. The lessor's payment is calculated based on a sliding scale, which can increase or decrease depending on the overall output or value of the production. 3. Minimum Royalty Agreement: A minimum royalty agreement ensures that the lessor receives a set minimum amount of payment, regardless of the production levels or revenue generated. This type of arrangement provides a guaranteed income for the lessor, even if the actual production is limited. 4. Deferred Payment Agreement: In certain cases, the lessor and lessee may agree to postpone the release of production payment to a later date. This can be beneficial when the lessee needs time to generate sufficient profits or when production is expected to increase in the future. Regardless of the specific type of Kansas Release of Production Payment by Lessor, it is crucial to carefully review and understand the terms and conditions included in the agreement before signing. Seeking legal advice from a licensed attorney experienced in oil, gas, or mineral leases is highly recommended ensuring the agreement aligns with your interests and meets all relevant legal requirements in Kansas.
