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.
Nebraska Shut-In Gas Royalty refers to a type of royalty payment that landowners or mineral rights owners in Nebraska receive when their gas wells are shut-in or temporarily non-producing. This royalty is a compensation provided to the owners for the loss of income when the gas production is interrupted due to various reasons, such as market conditions, low gas prices, lack of demand, or infrastructure constraints. When a gas well is shut-in, it means that the production from the well is halted, and the gas is not flowing or extracted for a period of time. This could be due to several factors, including seasonal variations in demand, maintenance activities, or restrictions imposed by regulatory authorities. In such cases, the Nebraska Shut-In Gas Royalty is paid to the owners as a way to mitigate their financial losses during the shut-in period. The calculation and payment of Nebraska Shut-In Gas Royalty differ based on various factors, including the terms of the lease agreement, the royalty percentage negotiated between the landowner and the gas company, and the duration of the shut-in period. There are several types of Nebraska Shut-In Gas Royalty that landowners may encounter: 1. Shut-In Clause in Lease Agreement: Some lease agreements have specific clauses that address the royalties to be paid when a gas well is shut-in. These clauses define the conditions and terms under which shut-in royalties will be paid, such as the duration of the shut-in period, the royalty percentage, and any limitations or exemptions. 2. Shut-In Royalty Clause by Regulatory Authorities: In some cases, regulatory authorities may enforce shut-in royalty provisions to ensure fair compensation for the loss of income experienced by the landowners. These provisions may be introduced to maintain the integrity of the gas market or protect the interests of the landowners during shut-in periods. 3. Force Mature Shut-In Royalty: When unforeseen circumstances like natural disasters, accidents, or unforeseen events occur, gas wells may be shut-in to protect the environment, personnel safety, or infrastructure. In such cases, landowners may be entitled to receive force majeure shut-in royalties, compensating for the forced interruption of production. 4. Economic Shut-In Royalty: Economic factors, such as low gas prices, high operational costs, or lack of demand, can render gas wells economically unviable for production. In these instances, landowners may receive economic shut-in royalties to compensate for the loss of expected income due to the cessation of gas production. In summary, Nebraska Shut-In Gas Royalty is a form of compensation provided to landowners or mineral rights owners when their gas wells are temporarily suspended from production. These royalties aim to offset their financial losses during the shut-in period caused by various reasons, such as market conditions, low prices, or regulatory requirements. Different types of Nebraska Shut-In Gas Royalty include shut-in clauses in lease agreements, shut-in royalty regulations by authorities, force majeure shut-in royalties, and economic shut-in royalties.
