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 Kansas Reservation of Additional Interests in Production refers to a provision in oil and gas leases that allows the lessor (landowner) to retain or reserve certain types of interests or rights in the production of hydrocarbons on their property. This reservation is typically established to protect the lessor's interests and ensure fair compensation for the resources extracted. There are several types of Kansas Reservation of Additional Interests in Production commonly found in oil and gas leases: 1. Overriding Royalty Interest (ORRIS): This type of reservation grants the lessor a percentage of the oil or gas produced from the leased property, free of any deduction for production costs. The ORRIS is often expressed as a fraction or a percentage and is separate from the lessor's royalty interest. 2. Net Profits Interest (NPI): The NPI is similar to an ORRIS, but it allows the lessor to receive a specified percentage of the net profits generated from the production. Unlike the ORRIS, the NPI is subject to production costs, which are deducted before calculating the net profits. 3. Working Interest (WI): This reservation grants the lessor a percentage ownership in the lease itself, making them responsible for a proportionate share of the costs associated with drilling, operating, and maintaining the oil or gas well. The working interest owner also shares in the revenues generated by the production. 4. Non-Participating Royalty Interest (NPR): In some cases, a landowner may choose to reserve a non-participating royalty interest, which entitles them to a percentage of the royalty paid to the working interest owners, without being responsible for any costs or activities related to the lease. The Kansas Reservation of Additional Interests in Production is an essential provision for both lessors and lessees in oil and gas leases. It ensures that the landowner's interests are protected and provides them with an opportunity to benefit from the resources extracted from their property. Moreover, this reservation allows for various options to suit the specific needs and preferences of the lessor, whether they prefer a passive role in the production or direct involvement in its operations.
