Appearance
Proportionate Reduction
Definition
Agreement that if the Lessor owns less than the full interest, their royalty will decrease according to the proportion of the title they own
Example
If Lessor owns a lesser interest in the Leased Premises than the entire, undivided fee simple estate therein, then the production royalties, shut-in royalties, and delay rentals herein provided for shall be paid to Lessor only in the proportion that Lessor’s interest bears to the whole and undivided fee