Alberta Overriding Royalty Agreement

Write up an Overriding Royalty Agreement pursuant to a Farmout and Option Agreement with this template for Alberta lands.

• The Agreement is between a grantor who owns interests in leases and royalty lands, and a grantee who is being allowed to reserve royalties out of the earned interest.
• The agreement contains methods of calculating the royalties for crude oil, natural gas, and condensate.
• The royalty is not subject to royalties, burdens or encumbrances payable on the royalty lands.
• The Grantor is appointed agent of the Grantee to enter into contracts and to sell petroleum substances on the same terms and conditions as it sells its own share.
• The Grantee has the right to take its share in kind, provided that if it does not take possession and separately dispose of its own share, it will pay the Grantor a management fee equivalent to a percentage of gross proceeds received from such share.

This Alberta Overriding Royalty Agreement is provided in MS Word format, and can be easily edited to fit your circumstances.