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.
Illinois Reservation of Overriding Royalty Interest, also known as Illinois ROY, is a legal provision that allows an individual or entity to retain a royalty interest in minerals, oil, or gas found on a property even after selling or leasing it to another party. This reservation ensures the original owner will continue receiving a specific percentage or portion of the revenue generated from the extraction and production of these resources. The Illinois ROY is based on an agreement between the property owner and the party purchasing or leasing the property. This agreement outlines the terms and conditions of the reservation, including the specific percentage of royalties to be retained, the duration of the reservation, and any other relevant provisions. There are various types of Illinois Reservation of Overriding Royalty Interest, including: 1. Mineral Royalty Interest: This type of reservation covers royalties from the extraction and sale of minerals such as coal, limestone, gypsum, or lead. The reservation can include a percentage of both the cash proceeds from sales and any bonus payments received. 2. Oil and Gas Royalty Interest: This type of reservation applies specifically to the extraction and production of oil and gas resources. The reservation may specify a percentage of revenue from the sale of oil and gas, or it may include a provision for delivery of a certain amount of oil or gas to the reservation holder. 3. Non-Participating Royalty Interest: In some cases, a property owner may choose to reserve a non-participating royalty interest. This means that while they retain the royalty interest, they do not have any involvement in the management or operation of the property. The reservation holder solely receives the agreed-upon royalties without any decision-making power or expenses. 4. Varying Royalty Interests: The percentage of royalties retained through an Illinois Reservation of Overriding Royalty Interest can differ for different types of resources, such as coal, oil, or gas. The reservation agreement may specify varying percentages based on the type of resource being extracted or produced. Overall, the Illinois Reservation of Overriding Royalty Interest offers property owners an opportunity to retain an interest in the revenue generated from the extraction of minerals, oil, or gas on their property, even after selling or leasing it. The specifics of the reservation, including the type and percentage of royalties, are established through a negotiated agreement between the parties involved.
