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.
The Virginia Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is an important contractual arrangement that outlines the terms and conditions regarding the payment of nonparticipating royalties in Virginia for segregated tracts covered by a single oil and gas lease. In Virginia, nonparticipating royalties refer to the financial compensation received by landowners who do not hold a working interest or mineral rights in a property but still have an ownership stake in the land. These royalties are typically paid by oil and gas operators who have leased the mineral rights from the landowner and are engaged in the exploration and production of oil and gas resources. Under the Virginia Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease, there may be different types depending on the specific details and provisions included. Some possible variations or subtypes could include: 1. Standard Agreement: This is the most common type of Virginia Agreement Governing Payment of Nonparticipating Royalty. It sets out the general terms and guidelines for the payment of royalties, including the percentage of gross revenue that will be paid, the frequency of royalty payments, and any specific provisions related to the particular oil and gas lease. 2. Special Provisions Agreement: In certain cases, the standard agreement may not sufficiently address unique circumstances or requirements. In such situations, a Special Provisions Agreement may be drafted to specifically outline additional or modified terms. This could include clauses related to the parcel size, geological considerations, or any other specific details that need to be considered for accurate royalty distribution. 3. Segregated Tracts Agreement: When an oil and gas lease covers multiple segregated tracts within a property, this type of agreement is used to determine how the nonparticipating royalties are to be allocated among the different tracts. It establishes a fair and equitable distribution mechanism based on factors like acreage, production volume, and potential reserves in each tract. 4. Amendment Agreement: Over time, circumstances may change, and adjustments to the original agreement may be required. An Amendment Agreement is used to modify or update the terms of the existing Virginia Agreement Governing Payment of Nonparticipating Royalty. This allows parties to address any changes in royalty calculations, legal requirements, or any other relevant aspects while maintaining a clear record of the modifications. In summary, the Virginia Agreement Governing Payment of Nonparticipating Royalty Under Segregated Tracts Covered by one Oil and Gas Lease is a comprehensive contractual document that ensures proper compensation for landowners in Virginia who do not hold working interests or mineral rights. By considering relevant keywords such as nonparticipating royalties, oil and gas leases, segregated tracts, and specific agreement types, all crucial aspects of this agreement can be effectively addressed.
