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 Oil Royalty is a form of monetary compensation paid to oil and gas leaseholders in the state of New York when their oil wells are temporarily shut down or inactive due to regulatory or economic reasons. These royalties are usually paid on a monthly or quarterly basis and serve as a way to provide leaseholders with a consistent income during periods when oil production is halted. Keywords: New York, shut-in oil royalty, compensation, oil wells, inactive, regulatory, economic reasons, leaseholders, consistent income, oil production. There are different types of New York Shut-In Oil Royalty, including: 1. Regulatory Shut-In Oil Royalty: When oil wells need to be shut down due to regulatory compliance issues, such as safety concerns, environmental violations, or permits not being up to date, leaseholders are entitled to receive compensation during the inactive period. 2. Economic Shut-In Oil Royalty: Occurs when oil production is halted due to unfavorable market conditions or low oil prices. In these cases, leaseholders receive royalties to offset the financial impact of temporarily ceasing production until market conditions improve. 3. Force Mature Shut-In Oil Royalty: In exceptional circumstances such as natural disasters, wars, pandemics, or other unforeseen events that prevent oil production, leaseholders are entitled to compensation during these force majeure events, enabling them to mitigate losses resulting from the shutdown. New York Shut-In Oil Royalty plays a significant role in supporting leaseholders during periods of inactivity or temporary halt in oil production. It provides them with financial stability, ensuring that their investment continues to yield a return even when oil wells are not actively producing. By receiving these royalties, leaseholders are better equipped to manage costs, support their operational expenses, and maintain their leases until the wells can resume production. In conclusion, New York Shut-In Oil Royalty is a crucial financial support system for leaseholders in the state when oil production is temporarily halted due to regulatory or economic reasons. Understanding the different types of shut-in royalties enables leaseholders to better navigate and maximize their financial benefits during periods of inactivity.
