New Mexico Assignment of Overriding Royalty Interests of a Percentage of Assignor's Net Revenue Interest, After Deductions of Certain Costs - Effectively A Net Profits

• Category: Oil Gas and Minerals - Assignments
• State: Multi-State
• Control #: US-OG-284
• 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 and all oil, gas and other minerals produced, saved and sold from the Lease and Land. A New Mexico Assignment of Overriding Royalty Interests of a Percentage of Assignor's Net Revenue Interest, After Deductions of Certain Costs, also known as a Net Profits assignment, is a legal agreement commonly used in the oil and gas industry. This contract allows an assignor (the original interest owner) to transfer a portion of their net revenue interest, which is the amount they receive after deducting certain costs, to an assignee. The assignee, in turn, gains overriding royalty interests on the assigned portion. The purpose of such an assignment is to provide an assignor with upfront cash or to diversify their portfolio by transferring a share of revenue interests. The assignor's net revenue interest is determined by subtracting certain costs, such as production costs and operating expenses, from the gross revenue generated by the oil and gas property. The assigned percentage of the net revenue interest is then freely transferable to the assignee. There may be different types of New Mexico Assignment of Overriding Royalty Interests of a Percentage of Assignor's Net Revenue Interest, After Deductions of Certain Costs, depending on specific variations and terms within the agreement. Some possible variations include: 1. Fixed Percentage Assignment: In this type, the assignor transfers a fixed percentage of their net revenue interest to the assignee. It means that the assignee will receive a constant share of the revenue generated by the property even if the overall revenue fluctuates. 2. Floating Percentage Assignment: This variation allows the assignor to transfer a percentage of their net revenue interest that varies depending on certain conditions. For example, the assignor may assign 10% of their net revenue interest when the oil prices are above a certain threshold and 5% when the prices fall below the threshold. 3. Time-Limited Assignment: This type of assignment places a time limit on the assignee's overriding royalty interests. The assignment may be valid for a certain number of years, after which the net revenue interest reverts to the assignor. 4. Partial Assignment: In this variation, the assignor only transfers a portion of their net revenue interest to the assignee, allowing them to maintain ownership of a percentage of the revenue generated by the property. It's important to note that these variations are not exhaustive, and the terms and conditions of New Mexico Assignment of Overriding Royalty Interests can be customized based on the needs and preferences of the involved parties.

A New Mexico Assignment of Overriding Royalty Interests of a Percentage of Assignor's Net Revenue Interest, After Deductions of Certain Costs, also known as a Net Profits assignment, is a legal agreement commonly used in the oil and gas industry. This contract allows an assignor (the original interest owner) to transfer a portion of their net revenue interest, which is the amount they receive after deducting certain costs, to an assignee. The assignee, in turn, gains overriding royalty interests on the assigned portion. The purpose of such an assignment is to provide an assignor with upfront cash or to diversify their portfolio by transferring a share of revenue interests. The assignor's net revenue interest is determined by subtracting certain costs, such as production costs and operating expenses, from the gross revenue generated by the oil and gas property. The assigned percentage of the net revenue interest is then freely transferable to the assignee. There may be different types of New Mexico Assignment of Overriding Royalty Interests of a Percentage of Assignor's Net Revenue Interest, After Deductions of Certain Costs, depending on specific variations and terms within the agreement. Some possible variations include: 1. Fixed Percentage Assignment: In this type, the assignor transfers a fixed percentage of their net revenue interest to the assignee. It means that the assignee will receive a constant share of the revenue generated by the property even if the overall revenue fluctuates. 2. Floating Percentage Assignment: This variation allows the assignor to transfer a percentage of their net revenue interest that varies depending on certain conditions. For example, the assignor may assign 10% of their net revenue interest when the oil prices are above a certain threshold and 5% when the prices fall below the threshold. 3. Time-Limited Assignment: This type of assignment places a time limit on the assignee's overriding royalty interests. The assignment may be valid for a certain number of years, after which the net revenue interest reverts to the assignor. 4. Partial Assignment: In this variation, the assignor only transfers a portion of their net revenue interest to the assignee, allowing them to maintain ownership of a percentage of the revenue generated by the property. It's important to note that these variations are not exhaustive, and the terms and conditions of New Mexico Assignment of Overriding Royalty Interests can be customized based on the needs and preferences of the involved parties.