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 Massachusetts Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a legal document that outlines the terms and conditions related to the payment of nonparticipating royalty for segregated tracts covered by a single oil and gas lease in the state of Massachusetts. This agreement is important in situations where there are multiple tracts within a larger lease area, and certain tracts are not actively participating in the operational and financial aspects of the oil and gas exploration and production activities. These nonparticipating tracts are entitled to receive a portion of the royalty payments generated from the lease, typically determined based on their ownership stake or predetermined percentage. The Massachusetts Agreement defines the rights and obligations of both the participating and nonparticipating parties involved in the lease. It specifies the methodology for calculating the nonparticipating royalty, the frequency of payment, and any additional terms that may be necessary for the agreement to be effectively implemented and administered. In some cases, there may be different types or variations of the Massachusetts Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease, depending on the specific circumstances and requirements of the parties involved. For instance, there could be agreements tailored specifically for offshore oil and gas leases, onshore leases, or agreements that incorporate specific provisions for environmental protection or surface use considerations. Keywords: Massachusetts, Agreement, Governing, Payment, Nonparticipating, Royalty, Segregated Tracts, Oil and Gas Lease.
