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Michigan Department of Natural Resources Office of Minerals Management Shut In Royalty Remittance Required under authority of Part 5, Section 502, Act 451 of 1994, as amended. Check the specific State
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How to fill out shut-in royalty remittance template

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How to fill out shut-in royalty remittance

01
To fill out shut-in royalty remittance, follow these steps:
02
Gather all necessary information and documents related to the shut-in royalty.
03
Ensure that you have the correct shut-in royalty remittance form. This might vary depending on the jurisdiction or organization.
04
Provide the required details such as the account number, lease number, well information, and the amount of shut-in royalty being remitted.
05
Calculate the total amount to be remitted accurately and double-check for any errors.
06
Sign and date the remittance form.
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Submit the filled-out shut-in royalty remittance form along with the payment to the designated authority or organization.
08
Keep a copy of the remittance form and payment receipt for your records.

Who needs shut-in royalty remittance?

01
Shut-in royalty remittance is typically needed by individuals or companies who have lease agreements or contracts with oil and gas companies.
02
It is a form of payment made to the operator of the well when the well is temporarily shut down due to various reasons such as low oil or gas prices, technical issues, or lack of market demand.
03
The shut-in royalty helps compensate the operator for the loss of revenue during the shut-in period.
04
Both lessors and lessees might require shut-in royalty remittance, depending on the terms and conditions outlined in their agreements.

What is Shut-In Royalty Remittance Form?

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Instructions for the form Shut-In Royalty Remittance

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Shut-in royalty remittance is a payment made to a mineral rights owner when their well is incapable of producing due to factors beyond their control.
The operator of the well is typically required to file shut-in royalty remittance.
Shut-in royalty remittance can be filled out by providing the necessary information about the well, production status, and the amount of royalties due.
The purpose of shut-in royalty remittance is to ensure that mineral rights owners are compensated when production is temporarily halted.
Information such as well identification, production status, royalty payment amount, and contact information may need to be reported on shut-in royalty remittance.
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