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 Shut-In Gas Royalty is a unique program designed to compensate gas producers in Puerto Rico for the inability to produce and sell natural gas due to unforeseen circumstances, such as market disruptions, natural disasters, or infrastructure constraints. This royalty program seeks to provide financial support to gas producers who are forced to shut down their operations temporarily. The Puerto Rico Shut-In Gas Royalty program was established to incentivize gas producers to invest in the region and maintain production levels, even during challenging times. By offering royalty payments, the government aims to support the industry and ensure the continued availability of natural gas supply for various purposes, including power generation, industrial use, and residential needs. There are different types of Puerto Rico Shut-In Gas Royalty, depending on the specific circumstances and the duration of the shut-in. These may include: 1. Market Disruption Royalty: This type of royalty is granted to gas producers when there is a disruption in the gas market, such as a sudden decrease in demand or a significant decrease in gas prices. It aims to compensate for the financial losses incurred due to the inability to sell gas at profitable rates. 2. Natural Disaster Royalty: In the event of a natural disaster, such as hurricanes or earthquakes, gas producers may be forced to halt operations temporarily for safety reasons or due to infrastructure damage. The natural disaster royalty compensates for this shutdown period and helps cover the costs of repairs and recovery. 3. Infrastructure Constraint Royalty: When there are limitations in existing infrastructure, such as pipeline capacity or storage facilities, gas producers may be unable to transport or store the produced gas effectively. The infrastructure constraint royalty supports the producers during these periods and encourages investment in infrastructure development to enhance the gas production and delivery capabilities. Overall, the Puerto Rico Shut-In Gas Royalty program provides crucial financial support to gas producers in Puerto Rico during challenging times, ensuring the resilience and sustainability of the gas industry while safeguarding the gas supply for the island's energy needs.
