Alberta Gross Overriding Royalty Agreement
Prepare a Gross Overriding Royalty Agreement with this downloadable template contract for oil and gas properties in the Province of Alberta.
- Gross Royalty. The Grantee receives a gross overriding percentage royalty on its interest in petroleum substances on the lands covered by the agreement. The royalty is free and clear of any costs involved in exploration, drilling, operation, production, transportation, etc.
- Sale of Interest. The Grantor, acting as agent for the Grantee, will sell the petroleum substances on the same terms and conditions as its own interest, so that the Grantee is entitled to any market available.
- Funds Held in Trust. If royalties are paid to the Grantor by a purchaser, those funds are held in trust by the Grantor until they are paid to the Grantee.
- Election to Take in Kind. The Grantee has the right, upon proper notice, to elect to takes its royalty percentsage of production in kind.
- Lien Rights. The Grantee has the right to a lien over the Grantor's interest to secure payment of royalties.
- Governing Laws. This Gross Overriding Royalty Agreement is governed by the laws of the Province of Alberta.
Last Updated: 20-October-2017