This form is used when an Assignor assigns, transfers, and conveys to Assignee an overriding royalty interest in the Lease and all of the oil and gas produced, saved and marketed from the Lease, out of the interest owned by Assignor, with proportionate reduction (the Override ).
A North Carolina Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction refers to a legal document that allows the transfer of ownership rights to a portion of the overriding royalty interest on an oil or gas lease in North Carolina. This assignment is typically used when the original owner of the interest wants to assign a portion of it to another party. The concept of proportionate reduction in this context refers to a situation where the original owner assigns a specific percentage or fraction of their overriding royalty interest to the assignee. This proportionate reduction ensures that both parties will share in the royalty income generated by the lease, according to their respective ownership percentages. For example, if the original owner assigns 50% of their interest, the assignee will now own half of the royalty income attributed to that original interest. There are various types of North Carolina Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction, including: 1. Partial Assignment: This type involves the transfer of a specific portion or percentage of the overriding royalty interest. The new assignee becomes a co-owner of the interest, sharing in the royalty income. 2. Fractional Assignment: In this case, the overriding royalty interest is divided into fractions, and each party owns a specific fraction or percentage of the interest. 3. Proportional Assignment: This type of assignment involves the proportional distribution of the overriding royalty interest among the assignor and assignee, based on their ownership percentages. 4. Limited Assignment: This type of assignment restricts the assignee's ownership rights to a specific geographic area or timeframe, limiting their interest in the lease. When drafting a North Carolina Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction, it is crucial to include detailed information about the parties involved, the specific overriding royalty interest being assigned, and the proportion or percentage of reduction. The document should also outline any limitations or conditions on the assignee's rights and responsibilities. Overall, the North Carolina Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is an essential legal instrument used to facilitate the transfer of ownership rights in oil or gas leases. It ensures fair distribution of royalty income among multiple parties while maintaining the interests of the original owners.
