New Mexico Assignment of Overriding Royalty Interest with Proportionate Reduction

• Category: Oil Gas and Minerals - Assignments
• State: Multi-State
• Control #: US-OG-282
• Format: Word; Rich Text

Description

This form is used by the Assignor to transfer, assign, and convey to Assignee an overriding royalty interest in a lease which may be proportionately reduced. New Mexico Assignment of Overriding Royalty Interest with Proportionate Reduction is a legal document that enables the transfer of rights to override royalty interests from one party to another, with the provision of proportionate reduction. In the oil and gas industry, overriding royalty interests (ORRIS) refer to a type of interest granted to an individual or entity, typically the landowner or a third party, granting them a share of production revenues. The New Mexico Assignment of Overriding Royalty Interest with Proportionate Reduction specifically applies to assignments within the state of New Mexico, adhering to its laws and regulations. With this assignment, the assignor agrees to transfer their ORRIS to the assignee, who becomes the new recipient of the overriding royalty interest. It is crucial to outline the details of the agreement, including the exact percentage or fraction of interest being transferred. The document should also identify the specific property or lease to which the assignment applies. To ensure fairness and consistency, the term "proportionate reduction" is included in the assignment. This means that if there are multiple overriding royalty holders on the same property or lease, and any reductions need to take place, the assignee's interest will be reduced similarly to maintain a proportional distribution of revenue. This provision safeguards the assignee's interest and ensures equitable treatment regarding production revenue. Different types or variations of the New Mexico Assignment of Overriding Royalty Interest with Proportionate Reduction may include additional clauses or provisions to address specific scenarios or requirements. These variations may include provisions related to operating costs, environmental liabilities, rights to audit, or other financial considerations. It is essential to consult with legal professionals knowledgeable in New Mexico oil and gas laws when drafting or executing this assignment. Accurate and comprehensive documentation is crucial to protect the interests of all parties involved in the assignment and to ensure compliance with state regulations. Using relevant keywords: — New Mexico Assignment of Overriding Royalty Interest — Overriding Royalty Interest with Proportionate Reduction ORRISRI Transfer in New Mexico - Oil and Gas Assignment in New Mexico — Proportionate Reduction ClausMorrisRI Assignment — Legal Documentation for New MexicORRISRI Assignments — New Mexico Oil and Gas Law— - Equitable Revenue Distribution in ORRIS Assignments ORRISRI Assignment Variations in New Mexico — Compliance with New Mexico Regulations in ORRIS Transfers.

New Mexico Assignment of Overriding Royalty Interest with Proportionate Reduction is a legal document that enables the transfer of rights to override royalty interests from one party to another, with the provision of proportionate reduction. In the oil and gas industry, overriding royalty interests (ORRIS) refer to a type of interest granted to an individual or entity, typically the landowner or a third party, granting them a share of production revenues. The New Mexico Assignment of Overriding Royalty Interest with Proportionate Reduction specifically applies to assignments within the state of New Mexico, adhering to its laws and regulations. With this assignment, the assignor agrees to transfer their ORRIS to the assignee, who becomes the new recipient of the overriding royalty interest. It is crucial to outline the details of the agreement, including the exact percentage or fraction of interest being transferred. The document should also identify the specific property or lease to which the assignment applies. To ensure fairness and consistency, the term "proportionate reduction" is included in the assignment. This means that if there are multiple overriding royalty holders on the same property or lease, and any reductions need to take place, the assignee's interest will be reduced similarly to maintain a proportional distribution of revenue. This provision safeguards the assignee's interest and ensures equitable treatment regarding production revenue. Different types or variations of the New Mexico Assignment of Overriding Royalty Interest with Proportionate Reduction may include additional clauses or provisions to address specific scenarios or requirements. These variations may include provisions related to operating costs, environmental liabilities, rights to audit, or other financial considerations. It is essential to consult with legal professionals knowledgeable in New Mexico oil and gas laws when drafting or executing this assignment. Accurate and comprehensive documentation is crucial to protect the interests of all parties involved in the assignment and to ensure compliance with state regulations. Using relevant keywords: — New Mexico Assignment of Overriding Royalty Interest — Overriding Royalty Interest with Proportionate Reduction ORRISRI Transfer in New Mexico - Oil and Gas Assignment in New Mexico — Proportionate Reduction ClausMorrisRI Assignment — Legal Documentation for New MexicORRISRI Assignments — New Mexico Oil and Gas Law— - Equitable Revenue Distribution in ORRIS Assignments ORRISRI Assignment Variations in New Mexico — Compliance with New Mexico Regulations in ORRIS Transfers.