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 ).
Florida Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction In Florida, an Assignment of Overriding Royalty Interest is a legal document used to transfer the rights to receive royalties from an oil or gas lease. This assignment can be made by the overriding royalty interest owner, who is entitled to a portion of the royalties generated by the lease. It ensures the transfer of these rights without any reduction in proportionate share. The overriding royalty interest is an interest in the production of oil or gas, distinct from the working interest held by the leaseholder. It entitles the overriding royalty interest owner to a fixed percentage of the production revenues, usually determined by a contractual agreement. This interest is often created for the benefit of someone other than the leaseholder, such as a landowner or a third party who negotiated separate terms. The Florida Assignment of Overriding Royalty Interest in the Overriding Royalty Interest Owner allows for the transfer of these rights from one party to another. It enables the overriding royalty interest owner to assign their interests, whether in part or in whole, to another individual or entity. This transfer is legally binding and ensures that the assignee(s) will receive the royalties according to the terms outlined in the assignment. One crucial aspect of the Florida Assignment of Overriding Royalty Interest is the stipulation of no proportionate reduction. This means that the assignment does not reduce the proportionate share of royalties held by the assignee. It assures the assignee that they will receive the designated percentage of royalties without any reduction or dilution, regardless of future changes in the ownership or operation of the oil or gas lease. While there may not be specific different types of Florida Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner with no proportionate reduction, variations can exist in terms of the parties involved, the percentage of overriding royalty interest being assigned, and the conditions under which the assignment is made. These assignments can be tailored to meet the unique needs and circumstances of the overriding royalty interest owner and the assignee. In conclusion, the Florida Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction, is a significant legal document that facilitates the transfer of overriding royalty interest rights without reducing the assignee's proportionate share of future royalties. It enables the overriding royalty interest owner to assign their interests to another party while ensuring that the assignee receives the designated percentage of royalties agreed upon.
