Montana Relinquishment Provision - All offset Wells
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FAQ
Compensatory royalties are often assessed based on the production from the. well deemed to be draining the lease. Some leases base the compensatory royalty on a. percentage of the adjacent wells' production, while others are silent.
Royalty Payment Clauses A royalty is agreed upon as a percentage of the lease, minus what was reasonably used in the lessee's production costs. This is stipulated in a Royalty Clause. The royalty is paid by the lessee to the owner of the mineral rights, the lessor in the lease.
