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 North Dakota 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 regarding the payment of nonparticipating royalties for segregated tracts covered by a single oil and gas lease in North Dakota. This agreement is significant in the oil and gas industry, particularly in the state of North Dakota, where drilling and exploration activities are prevalent. Under this agreement, nonparticipating royalty owners are individuals or entities who own the mineral rights to the land but are not directly involved in the drilling or production of oil and gas. They are entitled to receive a percentage of the revenue generated from the production activities on their tracts. The agreement specifies the exact terms and conditions for the calculation and payment of nonparticipating royalties. It outlines the formula for determining the royalty amount, taking into consideration factors such as production volumes, prices, and deductions. Furthermore, the North Dakota Agreement may have different types depending on the specific circumstances and requirements of the segregated tracts covered by the oil and gas lease. Variations may include: 1. Standard Nonparticipating Royalty Agreement: This is the most common type of agreement where the terms and conditions are outlined based on industry standards and best practices. 2. Customized Nonparticipating Royalty Agreement: In certain cases, unique considerations or special circumstances may require a tailored agreement that deviates from the standard terms. This type of agreement allows for flexibility and negotiation between the parties involved. 3. Temporary Nonparticipating Royalty Agreement: In situations where the ownership of the mineral rights is undergoing transition, a temporary agreement may be established to ensure continuity in royalty payments until a permanent arrangement is finalized. 4. State-Specific Nonparticipating Royalty Agreement: North Dakota, being a prominent state for oil and gas production, may have specific regulations and requirements for nonparticipating royalty agreements. These agreements would be specifically tailored to comply with North Dakota state laws. In conclusion, the North Dakota Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a crucial legal document that establishes the terms and conditions for the payment of nonparticipating royalties in North Dakota. The agreement may vary in types depending on customization, temporary arrangements, or adherence to state-specific regulations.
