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.
The Oklahoma Reservation of Additional Interests in Production refers to a legal provision in the state of Oklahoma that grants a property owner the right to reserve additional interests in the production of oil, gas, or other minerals on their land. This reservation is typically established through a contractual agreement or a conveyance document and allows the property owner to retain certain rights and benefits related to the extraction and production of natural resources. One of the common types of Oklahoma Reservation of Additional Interests in Production is the royalty reservation. Under this type, the property owner reserves a certain percentage or fraction of the total production as their share of the profits. This allows them to receive ongoing payments or royalties from the companies involved in drilling and extracting natural resources on their property. Another type is the working interest reservation, which grants the property owner the right to maintain a direct participation in the production process. In this case, the owner not only receives a share of the profits but also becomes actively involved in the operations, including bearing a portion of the costs and risks associated with drilling and production. In addition to these two common types, variations of Oklahoma Reservation of Additional Interests in Production can also include overriding royalty interests, production payments, and diversionary interests. Overriding royalty interests entitle the property owner to a specific share of production before the calculation of the regular royalty interest, often set at a fixed percentage. Production payments refer to a fixed amount of money or particular share of production that the owner is entitled to receive until certain conditions or terms are met. Lastly, diversionary interests allow the property owner to retain ownership of the minerals until a specified event or timeframe occurs. It is important to note that the specific terms and conditions associated with the reservation of additional interests in production can vary depending on the individual agreements between the property owner and the companies involved. These agreements typically include details such as the duration of the reservation, the terms for royalty calculations, and any specific limitations or conditions regarding the extraction and production activities. Overall, the Oklahoma Reservation of Additional Interests in Production is a legal provision that allows property owners to retain certain rights, benefits, and financial interests in the extraction and production of natural resources on their land. With various types like royalty, working interest, overriding royalty, production payment, and diversionary interests, property owners can choose the best arrangement that suits their needs and objectives.
