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.
Nevada Reservation of Additional Interests in Production refers to a legal provision that allows owners of land or minerals in the state of Nevada to reserve specific interests or rights in the production of resources found on their property. These reservations typically involve the withholding or retention of interests beyond the customary lease provisions when entering agreements with oil and gas companies or other resource extraction entities. There are several types of Nevada Reservation of Additional Interests in Production, including: 1. Royalty Interests: This type of reservation entitles the landowner to a predetermined percentage of the value or production volume of the extracted resources. Royalty interests can be on a gross or net basis, where the landowner's share is calculated before or after certain deductions, respectively. 2. Overriding Royalty Interests (ORRIS): Orris are similar to royalty interests but are separate from the lessor's retained royalty. Rather than being tied to the lessor's ownership stake, overriding royalty interests are created and managed independently and can be assigned or sold to third parties. 3. Non-Participating Royalty Interests (NPR): NPR reservations allow the landowner to retain a royalty interest without having to bear the associated costs of exploration, development, or operations. The lessor does not participate in any expenses or liabilities but still receives a share in production revenues. 4. Working Interest Carried Interests: In this type of reservation, the landowner retains a carried or free working interest, which means they have a proportion of ownership in the production but are not required to contribute financially to the costs of exploration, drilling, or operations. 5. Diversionary Interests: Diversionary interests come into effect when certain conditions specified in the lease or agreement are met. These conditions could include reaching a specific production threshold or the expiration of a lease term. Once triggered, the reserved interests revert to the landowner. 6. Covenants Running with the Land: These reservations bind not only the present landowner but also any future owners. Covenants running with the land can include limitations on water extraction, surface disturbance, or other specific requirements related to the production process. Nevada Reservation of Additional Interests in Production provides landowners with the ability to retain or assign specific interests in the exploration, development, and production activities conducted on their properties. These reservations ensure that the landowners can benefit from the value generated by the extraction of natural resources while maintaining a level of control and possibility for future financial gains.
