Delaware Assignment of Overriding Royalty Interest Limited As to Depth

• Category: Oil Gas and Minerals - Assignments
• State: Multi-State
• Control #: US-OG-290
• 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 and all oil, gas and other minerals produced, saved and sold from the Lease and Land, which is limited to depth. Delaware Assignment of Overriding Royalty Interest Limited As to Depth is a legal agreement used in the oil and gas industry. This assignment allows the assignor to transfer a portion or all of their overriding royalty interest (ORRIS) to another party, with specific limitations as to the depth of the assigned interest. An overriding royalty interest is a share of the oil and gas proceeds reserved for third parties, typically before the working interest owners receive their share. This interest is often created when the working interest is leased or sold to an oil and gas exploration company. The ORRIS owner receives a percentage of the revenue generated from the production, free of drilling and operating costs. The Delaware Assignment of Overriding Royalty Interest Limited As to Depth is utilized when the assignor wishes to assign only a portion of their ORRIS based on the depth of the production zone. The agreement specifies limitations on the depth range, allowing the assignee to receive the assigned percentage only from oil and gas production within the designated depth interval. Different types of Delaware Assignments of Overriding Royalty Interest Limited As to Depth include: 1. Vertical Depth Restricted Assignment: This type of assignment limits the assigned ORRIS to a specific vertical depth interval. For example, the assignor may assign 50% of their ORRIS limited to the production between 5,000 and 8,000 feet below the surface. 2. Horizontal Depth Restricted Assignment: In certain cases, the assignor may choose to restrict the assigned ORRIS to a specific horizontal distance. This type of assignment is common in unconventional drilling techniques like hydraulic fracturing, where the production occurs within a specific formation. 3. Vertical and Horizontal Depth Restricted Assignment: This type of assignment combines both vertical and horizontal depth limitations. The assignor may assign a percentage of their ORRIS limited to a specific interval vertically and horizontally, ensuring more precise delineation of the assigned interest. 4. Multiple Depth Restricted Assignment: Sometimes, an assignor may choose to assign their ORRIS in multiple depth intervals. This allows for a diversified investment, where the assignee receives a share of the production from different depth ranges. 5. Depth Restricted Assignment with Time Limitation: In certain situations, the assignment may include a time limitation in addition to depth restrictions. The assignor may limit the assigned ORRIS for a specific time period, such as five years, ensuring the assignee's interest only extends for a defined duration. When drafting a Delaware Assignment of Overriding Royalty Interest Limited As to Depth, it is crucial to consult with legal professionals specializing in oil and gas law. This will ensure that the language and limitations within the agreement accurately represent the assignor's intentions and comply with relevant regulations and industry practices. Undertaking such assignments requires a comprehensive understanding of the geology, reservoir characteristics, and drilling techniques employed in the specific oil and gas field.

Delaware Assignment of Overriding Royalty Interest Limited As to Depth is a legal agreement used in the oil and gas industry. This assignment allows the assignor to transfer a portion or all of their overriding royalty interest (ORRIS) to another party, with specific limitations as to the depth of the assigned interest. An overriding royalty interest is a share of the oil and gas proceeds reserved for third parties, typically before the working interest owners receive their share. This interest is often created when the working interest is leased or sold to an oil and gas exploration company. The ORRIS owner receives a percentage of the revenue generated from the production, free of drilling and operating costs. The Delaware Assignment of Overriding Royalty Interest Limited As to Depth is utilized when the assignor wishes to assign only a portion of their ORRIS based on the depth of the production zone. The agreement specifies limitations on the depth range, allowing the assignee to receive the assigned percentage only from oil and gas production within the designated depth interval. Different types of Delaware Assignments of Overriding Royalty Interest Limited As to Depth include: 1. Vertical Depth Restricted Assignment: This type of assignment limits the assigned ORRIS to a specific vertical depth interval. For example, the assignor may assign 50% of their ORRIS limited to the production between 5,000 and 8,000 feet below the surface. 2. Horizontal Depth Restricted Assignment: In certain cases, the assignor may choose to restrict the assigned ORRIS to a specific horizontal distance. This type of assignment is common in unconventional drilling techniques like hydraulic fracturing, where the production occurs within a specific formation. 3. Vertical and Horizontal Depth Restricted Assignment: This type of assignment combines both vertical and horizontal depth limitations. The assignor may assign a percentage of their ORRIS limited to a specific interval vertically and horizontally, ensuring more precise delineation of the assigned interest. 4. Multiple Depth Restricted Assignment: Sometimes, an assignor may choose to assign their ORRIS in multiple depth intervals. This allows for a diversified investment, where the assignee receives a share of the production from different depth ranges. 5. Depth Restricted Assignment with Time Limitation: In certain situations, the assignment may include a time limitation in addition to depth restrictions. The assignor may limit the assigned ORRIS for a specific time period, such as five years, ensuring the assignee's interest only extends for a defined duration. When drafting a Delaware Assignment of Overriding Royalty Interest Limited As to Depth, it is crucial to consult with legal professionals specializing in oil and gas law. This will ensure that the language and limitations within the agreement accurately represent the assignor's intentions and comply with relevant regulations and industry practices. Undertaking such assignments requires a comprehensive understanding of the geology, reservoir characteristics, and drilling techniques employed in the specific oil and gas field.