This form is used to resolve any question as to how royalty is to be paid to the Parties in the event of production, under the Lease, on any part of the Lands. The Parties are entering into this Agreement to stipulate and agree to the ownership of each Party's respective share of the royalty reserved in the Lease payable for production attributable to their Interests from a well located anywhere on the Lands.
Oregon Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease The Oregon Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a legal framework that outlines the terms and conditions related to the payment of nonparticipating royalties in Oregon for oil and gas exploration and extraction activities. This agreement ensures a fair and transparent mechanism for distributing royalties to nonparticipating interest owners who own portions of the land or mineral rights within the designated tracts covered by a single lease. Keywords: Oregon, agreement, governing, payment, nonparticipating royalty, segregated tracts, oil and gas lease. There are different types of Oregon Agreements Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease, depending on the specific terms and conditions outlined within them. Here are a few common variations: 1. Standard Oregon Agreement: This type of agreement sets out the basic framework for the payment of nonparticipating royalties to the interest owners of segregated tracts covered by a single oil and gas lease in Oregon. It establishes the criteria for calculating and distributing royalties based on the production and value of minerals extracted. 2. Specific Tract Agreement: In some cases, an Oregon Agreement may focus on a specific tract or set of tracts within a larger lease area. This type of agreement delves into the unique characteristics and considerations pertaining to a specific segregated tract, such as geological features, extraction methods, or conservation restrictions, to tailor the royalty payment terms accordingly. 3. Multi-Party Agreement: If multiple parties hold nonparticipating interests in a segregated tract covered by one oil and gas lease, a multi-party agreement might be required. This agreement facilitates cooperation, coordination, and equitable distribution of royalties among the various nonparticipating interest owners, ensuring all parties receive their fair share based on their respective ownership stakes. 4. Supplemental Agreement: Occasionally, supplementary agreements are necessary to address specific additional clauses or contingencies not covered in the initial Oregon Agreement Governing Payment of Nonparticipating Royalty. These supplemental agreements may deal with matters such as changes in market conditions, unforeseen circumstances, or alterations in extraction techniques. 5. Revised Agreement: Over time, circumstances may change, necessitating modifications to the existing Oregon Agreement. A revised version may be formulated to update terms, adjust royalty calculations, or account for newer regulatory standards. It ensures that the agreement accurately reflects the evolving dynamics of the industry and the interests of all parties involved. In conclusion, the Oregon Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease establishes a comprehensive set of rules for the fair distribution of nonparticipating royalties among interest owners in Oregon. These agreements differ based on the nature of the tract, multiple parties involved, or the need for supplementary or revised terms to address changing circumstances.
