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.
The Kentucky Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a document that outlines the terms and conditions for the payment of nonparticipating royalty to landowners who own segregated tracts under a single oil and gas lease in the state of Kentucky. This agreement is crucial for ensuring fair compensation and rights for both the landowners and the lessee. Under this agreement, the nonparticipating royalty owners are entitled to receive a predetermined percentage of the revenue generated from the production of oil and gas on their respective segregated tracts. The agreement provides a clear framework for calculating and disbursing these royalties, ensuring transparency and accuracy in the payment process. The Kentucky Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts also addresses various important aspects, such as the definition of segregated tracts, royalty calculation methods, payment schedules, reporting requirements, and dispute resolution mechanisms. It ensures that all parties involved in the lease agreement are aware of their rights and obligations, promoting fairness and preventing potential conflicts. There may be different types of Kentucky agreements governing payment of nonparticipating royalty under segregated tracts covered by one oil and gas lease, depending on the specific terms negotiated between the landowners and the lessee. Some variations may include provisions for different royalty percentages, payment frequencies, or additional clauses addressing specific concerns of the parties involved. Keywords: Kentucky Agreement, payment of nonparticipating royalty, segregated tracts, oil and gas lease, landowners, lessee, revenue, transparency, calculation methods, payment schedules, reporting requirements, dispute resolution, variations.
