Alberta Overriding Royalty Agreement
Write up an Overriding Royalty Agreement pursuant to a Farmout and Option Agreement with this customizable template for Alberta oil & gas properties.
- Parties. The Agreement is between (1) the grantor who owns interests in leases and royalty lands and (2) the grantee who is being allowed to reserve royalties out of the earned interest.
- Royalty Calculations. The agreement contains methods of calculating the royalties for crude oil, natural gas, and condensate.
- Overriding Royalty. The royalty under this Agreement is not subject to other royalties, burdens or encumbrances payable on the royalty lands.
- Agency. The grantee appoints the grantor as its agent to enter into contracts and to sell petroleum substances on the same terms and conditions as it sells its own share.
- Management Fee. 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.
- Governing Laws. This Overriding Royalty Agreement is intended for use in the Province of Alberta, Canada and is governed by Alberta and Canadian law.
- Format. The document provided in MS Word format and can be easily edited to fit your circumstances. Other formats available on request.
Last Updated: 20-October-2017