Illinois Assignment of Oil and Gas Leases when Producing with Reservation of Production Payment allows parties to transfer their interests in oil and gas leases while reserving a production payment. This production payment is a fixed percentage of the revenue generated from the lease's production and is retained by the assignor for a specified period or until specific conditions are met. This type of assignment typically occurs when an assignor wants to transfer the ownership of the lease but still retain some income from future production. Keywords: Illinois Assignment of Oil and Gas Leases, Producing, Reservation, Production Payment, Transfer, Interests, Revenue, Lease, Assignor, Ownership, Income, Future Production There are two common types of Illinois Assignment of Oil and Gas Leases when Producing with Reservation of Production Payment: 1. Absolute Assignment with Reservation of Production Payment: In this type of assignment, the assignor transfers their ownership rights in the oil and gas lease to the assignee, while reserving a production payment. The production payment is typically a percentage of the revenue generated from the production of oil and gas on the leased property. The assignor continues to receive this payment until a specified amount is reached or for a predetermined duration. 2. Partial Assignment with Reservation of Production Payment: In this type of assignment, the assignor transfers only a portion of their ownership rights in the oil and gas lease to the assignee. The assignor still retains an interest in the lease and reserves a production payment based on the assigned portion. The assignee becomes a co-owner of the lease alongside the assignor and benefits from future production while paying a portion of the production payment to the assignor. Both types of assignments require a written agreement between the assignor and assignee, outlining the terms and conditions of the assignment and the reservation of the production payment. The agreement typically includes details such as the percentage of the production payment, the duration of the reservation, and any applicable conditions or thresholds. It is important for all parties involved in an Illinois Assignment of Oil and Gas Leases when Producing with Reservation of Production Payment to carefully review and understand the terms of the assignment agreement. Consulting legal professionals with expertise in oil and gas leases is highly recommended ensuring compliance with state laws and to protect the interests of all parties involved. In conclusion, an Illinois Assignment of Oil and Gas Leases when Producing with Reservation of Production Payment allows for the transfer of ownership rights in oil and gas leases while reserving a percentage of the production revenue as a payment. Absolute and partial assignments are the two main types of this arrangement. Careful consideration and legal guidance are crucial when entering into such agreements to ensure a fair and legally sound transaction.