This provision provides for the assignor to except from this assignment and reserve an overriding royalty interest of all oil, gas, casinghead gas, and other minerals that may be produced from the lands under the terms of the Leases that are the subject of this assignment.
California Reservation of Overriding Royalty Interest (LORI) refers to a legal arrangement in which the owner of mineral rights reserves a portion (overriding royalty interest) of their share of production for themselves or a designated third party. It grants the interest holder the right to receive a specified percentage of revenues from the production of oil, gas, or other minerals, regardless of any other interest in the mineral estate. One type of California Reservation of Overriding Royalty Interest is the "Fixed Overriding Royalty Interest." In this arrangement, a fixed percentage is designated upfront, typically in the oil and gas lease agreement. The overriding royalty interest holder receives a fixed percentage of total production revenues, which remains constant throughout the production period. Another type is the "Floating Overriding Royalty Interest." Unlike the fixed interest, the percentage of the floating overriding royalty interest is determined as a percentage of the actual production, rather than a fixed percentage. This means that the interest holder's share can fluctuate based on the production output, allowing for potential higher or lower earnings depending on the industry's performance. Keywords: California Reservation of Overriding Royalty Interest, mineral rights, production, revenues, oil, gas, minerals, interest holder, fixed overriding royalty interest, floating overriding royalty interest, production output, lease agreement.California Reservation of Overriding Royalty Interest (LORI) refers to a legal arrangement in which the owner of mineral rights reserves a portion (overriding royalty interest) of their share of production for themselves or a designated third party. It grants the interest holder the right to receive a specified percentage of revenues from the production of oil, gas, or other minerals, regardless of any other interest in the mineral estate. One type of California Reservation of Overriding Royalty Interest is the "Fixed Overriding Royalty Interest." In this arrangement, a fixed percentage is designated upfront, typically in the oil and gas lease agreement. The overriding royalty interest holder receives a fixed percentage of total production revenues, which remains constant throughout the production period. Another type is the "Floating Overriding Royalty Interest." Unlike the fixed interest, the percentage of the floating overriding royalty interest is determined as a percentage of the actual production, rather than a fixed percentage. This means that the interest holder's share can fluctuate based on the production output, allowing for potential higher or lower earnings depending on the industry's performance. Keywords: California Reservation of Overriding Royalty Interest, mineral rights, production, revenues, oil, gas, minerals, interest holder, fixed overriding royalty interest, floating overriding royalty interest, production output, lease agreement.
