Colorado Assignment of Carried Working Interest

• Category: Oil Gas and Minerals - Assignments
• State: Multi-State
• Control #: US-OG-300
• Format: Word; Rich Text

Description

This form is used when the Assignor grants, sells, and conveys to Assignee the Carried Interest in an oil and gas lease. Colorado Assignment of Carried Working Interest is a legal agreement that transfers the right to a share of the working interest in an oil and gas lease or well in Colorado. The term "carried working interest" refers to the situation when one party (the "carrying party") agrees to bear the entire cost of drilling and operating a well, while another party (the "carried party") is assigned a working interest in the well without the obligation of incurring any drilling or operational costs. In Colorado, there are various types of Assignment of Carried Working Interest agreements that cater to different circumstances. Some of these types include: 1. Farm out Agreement: A farm out is a common type of carried working interest agreement where the owner of an oil and gas lease, known as the "armor," assigns a portion of their working interest to another party, the "farmer." The farmer agrees to drill a specified number of wells or perform specific operations on the lease property within a predetermined timeframe. In exchange, the farmer obtains a working interest in the lease, often at a reduced or carried cost. 2. Participation Agreement: A participation agreement is another type of Colorado Assignment of Carried Working Interest. In this arrangement, the carried party, also known as the "carried interest owner," contributes a predetermined interest in the drilling and operational costs but receives a proportionate share of the working interest. The carrying party typically covers the remaining costs associated with the project, such as costs above the carried interest party's agreed-upon participation level. 3. Joint Operating Agreement (JOB): While not exclusively a carried working interest agreement, a Joint Operating Agreement in Colorado can include provisions for carried interest. A JOB establishes the rights, obligations, and responsibilities of multiple working interest owners by outlining the governance and operational aspects of a lease or well. The agreement may include provisions for carried working interests, where one or more parties are carried by others in terms of certain drilling or operational expenses. In summary, the Colorado Assignment of Carried Working Interest is a legal arrangement used in the oil and gas industry to assign a share of working interest without the financial burden of drilling and operational costs. Different types of agreements, such as Farm out Agreements, Participation Agreements, and Joint Operating Agreements, can be utilized depending on the specific circumstances and objectives of the parties involved.

Colorado Assignment of Carried Working Interest is a legal agreement that transfers the right to a share of the working interest in an oil and gas lease or well in Colorado. The term "carried working interest" refers to the situation when one party (the "carrying party") agrees to bear the entire cost of drilling and operating a well, while another party (the "carried party") is assigned a working interest in the well without the obligation of incurring any drilling or operational costs. In Colorado, there are various types of Assignment of Carried Working Interest agreements that cater to different circumstances. Some of these types include: 1. Farm out Agreement: A farm out is a common type of carried working interest agreement where the owner of an oil and gas lease, known as the "armor," assigns a portion of their working interest to another party, the "farmer." The farmer agrees to drill a specified number of wells or perform specific operations on the lease property within a predetermined timeframe. In exchange, the farmer obtains a working interest in the lease, often at a reduced or carried cost. 2. Participation Agreement: A participation agreement is another type of Colorado Assignment of Carried Working Interest. In this arrangement, the carried party, also known as the "carried interest owner," contributes a predetermined interest in the drilling and operational costs but receives a proportionate share of the working interest. The carrying party typically covers the remaining costs associated with the project, such as costs above the carried interest party's agreed-upon participation level. 3. Joint Operating Agreement (JOB): While not exclusively a carried working interest agreement, a Joint Operating Agreement in Colorado can include provisions for carried interest. A JOB establishes the rights, obligations, and responsibilities of multiple working interest owners by outlining the governance and operational aspects of a lease or well. The agreement may include provisions for carried working interests, where one or more parties are carried by others in terms of certain drilling or operational expenses. In summary, the Colorado Assignment of Carried Working Interest is a legal arrangement used in the oil and gas industry to assign a share of working interest without the financial burden of drilling and operational costs. Different types of agreements, such as Farm out Agreements, Participation Agreements, and Joint Operating Agreements, can be utilized depending on the specific circumstances and objectives of the parties involved.