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.
Massachusetts Shut-In Gas Royalty refers to the financial compensation received by a landowner or mineral rights' owner in Massachusetts when gas production is halted or reduced due to unforeseen circumstances or market conditions. The shut-in gas royalty serves as a way to provide income to the rights holders during periods of shut-in production. In Massachusetts, there are two main types of shut-in gas royalty: 1. Temporary Shut-In Gas Royalty: This type of royalty is granted when gas production is temporarily halted due to factors like equipment failure, maintenance, or market instability. This can be for a short period of time, ranging from hours to weeks, during which the royalty is still paid to the rights holders to compensate for lost production. 2. Long-term Shut-In Gas Royalty: In rare instances, gas wells may need to be shut-in for a prolonged period, often due to significant market fluctuations, regulatory constraints, or the unavailability of a viable market. In such cases, landowners or mineral rights owners continue to receive royalties, albeit at a reduced rate, to compensate for the loss of income that would have been generated from gas production. Keywords: Massachusetts, shut-in gas royalty, gas production, landowner, mineral rights, financial compensation, halted production, reduced production, unforeseen circumstances, market conditions, temporary shut-in, equipment failure, maintenance, market instability, short period, long-term shut-in, gas wells, market fluctuations, regulatory constraints, reduced rate, loss of income.
