Kentucky Assignment of Overriding Royalty Interest with Proportionate Reduction

• Category: Oil Gas and Minerals - Assignments
• State: Multi-State
• Control #: US-OG-282
• 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 which may be proportionately reduced. The Kentucky Assignment of Overriding Royalty Interest with Proportionate Reduction is a legal document that pertains to the transfer of overriding royalty interests (ORRIS) in oil and gas leases in the state of Kentucky. This agreement allows for the assignment of such interests while also maintaining proportionate reduction. Keywords: Kentucky, Assignment, Overriding Royalty Interest, Proportionate Reduction, Oil and Gas Leases. In the realm of petroleum exploration and production, an overriding royalty interest is a contractual right that grants a party the entitlement to a specified percentage of the revenue produced from the lease. This interest is separate from the leasehold and mineral interest, providing the holder with a share in the lease's revenue without actually bearing the costs of exploration or production. The Kentucky Assignment of Overriding Royalty Interest with Proportionate Reduction comes into play when a party wishes to assign their ORRIS to another party. This process allows for the transfer of the interest and the associated rights, obligations, and benefits to the assignee. One of the notable aspects of this agreement is the inclusion of proportionate reduction. The term "proportionate reduction" refers to the reduction in the assigned interest proportionate to any subsequent assignment, farm out, or conveyance transactions within the lease. In other words, if there are further assignments or conveyances of ORRIS within the lease, the assigned interest will be reduced proportionally to accommodate the new interests. Different types of Kentucky Assignment of Overriding Royalty Interest with Proportionate Reduction might include: 1. Standard Kentucky Assignment of Overriding Royalty Interest with Proportionate Reduction: This is a common form of the agreement, encompassing the transfer of ORRIS according to the established provisions with proportionate reduction. 2. Non-Operated Kentucky Assignment of Overriding Royalty Interest with Proportionate Reduction: This type of assignment deals with ORRIS on non-operated leases, where the assignee does not have any operational responsibilities but still owns an interest. 3. Partial Assignment of Overriding Royalty Interest with Proportionate Reduction: In certain cases, parties may decide to assign only a portion of their ORRIS. This type of assignment specifies the percentage or fraction being transferred, along with proportionate reduction provisions. Overall, the Kentucky Assignment of Overriding Royalty Interest with Proportionate Reduction is a crucial legal document that provides a framework for the transfer of overriding royalty interests while ensuring proportionate reduction, maintaining fairness and equity among the different parties involved in oil and gas lease transactions in Kentucky.

The Kentucky Assignment of Overriding Royalty Interest with Proportionate Reduction is a legal document that pertains to the transfer of overriding royalty interests (ORRIS) in oil and gas leases in the state of Kentucky. This agreement allows for the assignment of such interests while also maintaining proportionate reduction. Keywords: Kentucky, Assignment, Overriding Royalty Interest, Proportionate Reduction, Oil and Gas Leases. In the realm of petroleum exploration and production, an overriding royalty interest is a contractual right that grants a party the entitlement to a specified percentage of the revenue produced from the lease. This interest is separate from the leasehold and mineral interest, providing the holder with a share in the lease's revenue without actually bearing the costs of exploration or production. The Kentucky Assignment of Overriding Royalty Interest with Proportionate Reduction comes into play when a party wishes to assign their ORRIS to another party. This process allows for the transfer of the interest and the associated rights, obligations, and benefits to the assignee. One of the notable aspects of this agreement is the inclusion of proportionate reduction. The term "proportionate reduction" refers to the reduction in the assigned interest proportionate to any subsequent assignment, farm out, or conveyance transactions within the lease. In other words, if there are further assignments or conveyances of ORRIS within the lease, the assigned interest will be reduced proportionally to accommodate the new interests. Different types of Kentucky Assignment of Overriding Royalty Interest with Proportionate Reduction might include: 1. Standard Kentucky Assignment of Overriding Royalty Interest with Proportionate Reduction: This is a common form of the agreement, encompassing the transfer of ORRIS according to the established provisions with proportionate reduction. 2. Non-Operated Kentucky Assignment of Overriding Royalty Interest with Proportionate Reduction: This type of assignment deals with ORRIS on non-operated leases, where the assignee does not have any operational responsibilities but still owns an interest. 3. Partial Assignment of Overriding Royalty Interest with Proportionate Reduction: In certain cases, parties may decide to assign only a portion of their ORRIS. This type of assignment specifies the percentage or fraction being transferred, along with proportionate reduction provisions. Overall, the Kentucky Assignment of Overriding Royalty Interest with Proportionate Reduction is a crucial legal document that provides a framework for the transfer of overriding royalty interests while ensuring proportionate reduction, maintaining fairness and equity among the different parties involved in oil and gas lease transactions in Kentucky.