The form is used when the Assignor transfers, assigns, and conveys to Assignee an overriding royalty interest in the Leases and all of the oil, gas and other minerals produced, saved and marketed from the Lease equal to a pecentage of 8/8 (the Override ).
A Delaware Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction, refers to a legal document that allows an overriding royalty interest (ORRIS) owner in Delaware to transfer or assign their interest to another party without any reduction in proportionate share. The overriding royalty interest is a type of interest in an oil or gas property that entitles the owner to receive a share of the revenue from the production and sale of the resources, usually on top of the royalty interest paid to the property owner. The assignment of this interest in the ORRIS owner is a common practice in the oil and gas industry, often undertaken for various reasons such as financial transactions, estate planning, or portfolio diversification. In Delaware, there are different types of ORRIS assignments that can be made by the overriding royalty interest owner: 1. Full Assignment: This type of assignment involves the complete transfer of the ORRIS owner's interest to another party. In this case, the assignee assumes all rights and responsibilities associated with the ORRIS, including the receipt of revenue and any applicable obligations. 2. Partial Assignment: Alternatively, the ORRIS owner can choose to assign only a portion of their interest to another party, retaining a percentage for themselves. This type of assignment allows for strategic partnerships or investment opportunities while maintaining some ownership control. 3. No Proportionate Reduction: The "No Proportionate Reduction" clause ensures that the assignee is entitled to the full assigned ORRIS interest without any reduction or dilution in their share of future revenue. This clause protects the assignee from any subsequent changes or additions to the ORRIS ownership structure. To complete a Delaware Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction, the parties involved must execute a written agreement that clearly outlines the terms and conditions of the assignment. The agreement typically includes details about the assigned interest percentage, effective date, consideration or compensation provided, and any other relevant provisions required by Delaware law. In summary, a Delaware Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction, allows an ORRIS owner to transfer their interest to another party without any reduction in the assignee's proportionate share. This type of assignment provides flexibility for property owners to manage their interests and explore opportunities while ensuring the assignee receives the full assigned ORRIS interest without any potential loss or reduction.
