Agreement to Defer Production of State Royalty Gas - Louisiana

Agreement to Defer Production of State Royalty Gas is a legal document that was released by the Louisiana Department of Natural Resources - a government authority operating within Louisiana.

FAQ

Q: What is the Agreement to Defer Production of State Royalty Gas in Louisiana?A: The Agreement to Defer Production of State Royalty Gas is a contract that allows the postponement of the production of gas owned by the state of Louisiana and the payment of associated royalties.

Q: Why would gas production be deferred?A: Gas production can be deferred for various reasons, such as low market prices or the need for infrastructure development.

Q: Who owns the state royalty gas in Louisiana?A: The state of Louisiana owns the royalty gas.

Q: What are royalties?A: Royalties are payments made to the owner of a resource, such as gas, in exchange for the right to extract and sell it.

Q: How does the agreement work?A: The agreement allows the producer to delay production of the state royalty gas and defer payment of royalties until a later date.

Q: Who can enter into the agreement?A: Producers who have an ownership or contractual interest in the state royalty gas can enter into the agreement.

Q: Are there any conditions for entering into the agreement?A: Yes, there may be conditions such as obtaining necessary approvals and complying with applicable laws and regulations.

Q: What are the benefits of deferring production?A: Deferring production allows producers to avoid producing gas during low market prices and provides flexibility for infrastructure development.

Q: Is the agreement only applicable to gas production?A: Yes, the agreement specifically relates to the deferral of production of state royalty gas.

Q: Who oversees the agreement?A: The execution and administration of the agreement is overseen by the Office of Mineral Resources in Louisiana.