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 New Mexico Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is a legal document that allows for the transfer of an overriding royalty interest from one party to another in the state of New Mexico. This type of assignment is typically employed when there is a need for a proportional reduction in royalty interests. Keywords: New Mexico, assignment, overriding royalty interest, single lease, proportionate reduction In New Mexico, an overriding royalty interest refers to a percentage of revenue or production that is granted to a party, usually an individual or a company, as a form of compensation for their interest in an oil and gas lease. This interest is separate from the leasehold interest and allows the owner to receive a share of the revenue generated from the production of oil and gas on the leased property. The purpose of an assignment is to transfer the ownership of the overriding royalty interest from the assignor to the assignee. This legal document specifies the details of the transfer, including the parties involved, the terms of the assignment, and any conditions or restrictions that may apply. In some cases, it may be necessary to reduce the proportionate share of the overriding royalty interest. This situation may arise when there are multiple overriding royalty interest owners, and the parties involved agree to adjust the distribution of the royalty interest based on certain circumstances, such as changes in production or revenue. Different types of New Mexico Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction may include: 1. Voluntary Proportionate Reduction: This type of reduction occurs when the parties involved agree to modify the proportionate distribution of the overriding royalty interest voluntarily. They may choose to do so for various reasons, such as a change in production levels or financial circumstances. 2. Court-Ordered Proportionate Reduction: In some cases, a court may intervene and order a proportionate reduction in the overriding royalty interest if a dispute arises among the parties involved. The court will review the relevant evidence and make a determination based on the specific circumstances of the case. 3. Default Proportionate Reduction: If the terms of the original lease agreement or assignment do not adequately address a specific situation, a default provision may come into effect. This provision typically outlines a predetermined formula for proportionate reduction that applies if certain conditions are met, such as a decrease in production levels or revenue. In summary, a New Mexico Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is a legal document used to transfer the ownership of an overriding royalty interest. Different types of reduction may occur, including voluntary, court-ordered, or default proportionate reduction, depending on the circumstances and agreements reached by the parties involved.
A New Mexico Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is a legal document that allows for the transfer of an overriding royalty interest from one party to another in the state of New Mexico. This type of assignment is typically employed when there is a need for a proportional reduction in royalty interests. Keywords: New Mexico, assignment, overriding royalty interest, single lease, proportionate reduction In New Mexico, an overriding royalty interest refers to a percentage of revenue or production that is granted to a party, usually an individual or a company, as a form of compensation for their interest in an oil and gas lease. This interest is separate from the leasehold interest and allows the owner to receive a share of the revenue generated from the production of oil and gas on the leased property. The purpose of an assignment is to transfer the ownership of the overriding royalty interest from the assignor to the assignee. This legal document specifies the details of the transfer, including the parties involved, the terms of the assignment, and any conditions or restrictions that may apply. In some cases, it may be necessary to reduce the proportionate share of the overriding royalty interest. This situation may arise when there are multiple overriding royalty interest owners, and the parties involved agree to adjust the distribution of the royalty interest based on certain circumstances, such as changes in production or revenue. Different types of New Mexico Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction may include: 1. Voluntary Proportionate Reduction: This type of reduction occurs when the parties involved agree to modify the proportionate distribution of the overriding royalty interest voluntarily. They may choose to do so for various reasons, such as a change in production levels or financial circumstances. 2. Court-Ordered Proportionate Reduction: In some cases, a court may intervene and order a proportionate reduction in the overriding royalty interest if a dispute arises among the parties involved. The court will review the relevant evidence and make a determination based on the specific circumstances of the case. 3. Default Proportionate Reduction: If the terms of the original lease agreement or assignment do not adequately address a specific situation, a default provision may come into effect. This provision typically outlines a predetermined formula for proportionate reduction that applies if certain conditions are met, such as a decrease in production levels or revenue. In summary, a New Mexico Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is a legal document used to transfer the ownership of an overriding royalty interest. Different types of reduction may occur, including voluntary, court-ordered, or default proportionate reduction, depending on the circumstances and agreements reached by the parties involved.
