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.
Missouri Shut-In Gas Royalty refers to the royalties paid to landowners or mineral rights owners in the state of Missouri when the production of natural gas from their properties is temporarily halted or shut down. This typically occurs when gas wells are shut-in due to economic or operational reasons, such as low gas prices, maintenance, or insufficient infrastructure. As a landowner or mineral rights' owner in Missouri, understanding the different types of Shut-In Gas Royalty can be beneficial. Here are a few key types: 1. Shut-In Royalty: This is the standard Shut-In Gas Royalty paid to landowners when gas production is temporarily stopped. It is calculated based on a percentage of the gas sales value and is typically outlined in an oil and gas lease agreement signed between the landowner and the gas company. 2. Shut-In Well Royalty: If a specific gas well is shut down while neighboring wells continue production, landowners of the shut-in well may receive a slightly different royalty. This can occur when a well requires maintenance, repairs, or is uneconomical to operate temporarily, but others in the area are still producing. 3. Force Mature Royalty: In certain circumstances, when production ceases due to unforeseen events, such as natural disasters, legal disputes, or regulatory actions, a force majeure clause in the lease agreement may become applicable. This clause typically allows for a temporary suspension of royalty payments, but conditions may vary depending on the specific language of the lease. 4. Minimum Royalty: Some leases may include a provision called a minimum royalty clause, ensuring landowners receive a predetermined minimum royalty payment regardless of whether production occurs. This can provide additional security in the event of a shut-in period. 5. Shut-In Royalty Clauses: Lease agreements may also include specific clauses outlining the duration, conditions, and notification requirements related to shut-in periods, giving clarity to both parties involved. Missouri Shut-In Gas Royalty plays a significant role in compensating landowners for their mineral rights during periods of inactivity. It is crucial for landowners to review and understand the lease agreements and related royalties to ensure fair compensation and protection of their interests.
