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.
Puerto Rico Minimum Royalty Payments refer to the minimum amount of money that must be paid to the government of Puerto Rico for the use or extraction of certain natural resources, such as oil, gas, minerals, and geothermal resources. These payments are applicable to companies or individuals engaged in activities related to the exploration, production, and extraction of these resources within the jurisdiction of Puerto Rico. The Puerto Rico government aims to ensure fair compensation for the utilization of natural resources and to regulate the sustainable extraction practices within its territory. The implementation of minimum royalty payments helps to strike a balance between economic development and environmental preservation. There are several types of Puerto Rico Minimum Royalty Payments, including: 1. Oil Royalties: Companies involved in offshore or onshore oil exploration, drilling, and production must pay a minimum royalty fee to Puerto Rico's government. This fee is typically determined based on a percentage of the total oil production volume or the value of the extracted oil. 2. Gas Royalties: Similar to oil royalties, companies engaged in natural gas exploration, extraction, and production are required to pay a minimum royalty payment to Puerto Rico. The royalty fee is generally calculated based on the amount of gas produced or its value. 3. Mineral Royalties: Mining companies operating in Puerto Rico must comply with minimum royalty payment regulations. These payments are typically calculated based on the quantity or value of the extracted minerals, such as gold, silver, copper, limestone, and other valuable resources. 4. Geothermal Royalties: Puerto Rico is known for its geothermal energy potential. Companies involved in the extraction and utilization of geothermal energy resources are subject to minimum royalty payments. The fees associated with geothermal royalties may be based on the amount of energy produced or its assessed value. It is important for companies engaged in natural resource extraction in Puerto Rico to carefully adhere to the minimum royalty payment requirements established by the government. Failure to comply with these regulations can result in penalties, fines, or legal consequences. Additionally, by implementing minimum royalty payments, Puerto Rico aims to generate revenue to invest in environmental conservation, infrastructure development, and other public services that benefit the local communities and contribute to the overall welfare of the island.
