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.
New York Shut-In Gas Royalty refers to a specific type of royalty payment that is associated with the shut-in status of natural gas wells in the state of New York. When gas wells are temporarily shut down due to various reasons, such as low gas prices or technical difficulties, the oil and gas operator is required to pay a royalty to mineral rights owners or lessors for the unproduced gas during the shut-in period. The shut-in gas royalty serves as compensation to the mineral rights owners for the loss of potential income that they would have received from the sale of the gas. The payment is based on the terms agreed upon in the lease agreement between the operator and the mineral rights' owner. It is important to note that shut-in gas royalties are only applicable to gas wells that have been temporarily shut down and do not produce any natural gas during the shut-in period. In New York, there is no specific categorization or different types of shut-in gas royalties. However, different lease agreements may have varying terms and conditions regarding shut-in royalties, such as the duration of the shut-in period, the percentage of the royalty payment, and the circumstances under which shut-in royalties are applicable. It is crucial for mineral rights owners to carefully review their lease agreements to understand the specific terms and conditions related to shut-in gas royalties. Keywords: New York, shut-in gas royalty, natural gas wells, shut down, compensation, royalty payment, mineral rights owners, lessors, unproduced gas, shut-in period, lease agreement, operator, temporary shut down, potential income, sale of gas, terms and conditions.
