Our records indicate that your company is the operator or operating-rights owner for at least one Federal oil and gas lease or approved Federal unit agreement on the offshore Texas Outer Continental Shelf within the zone defined and governed by...Royalty-in-Kind Agreement • May 5th, 2020
This letter provides the procedures that you must follow for such RIK properties during the course of this pilot project. Our authority is the OCSLA, at 43 U.S.C. 1353, and the royalty provisions contained in your Federal lease(s). This letter establishes the terms and conditions under which the United States (Lessor) will take natural gas in kind during this pilot project, and under which you, the designated operator or operating-rights owner, as representative of the Lessee or operating-rights owner, must make natural gas taken as royalty-in-kind available to the Lessor or its purchaser or the purchaser’s agent. For purposes of this letter, the term “Royalty Gas” means that portion of Federal lease or agreement production equal to the lease royalty rate.
