New Mexico Assignment of Production Payment Measured by Quantity of Production

• Category: Oil Gas and Minerals - Assignments
• State: Multi-State
• Control #: US-OG-293
• Format: Word; Rich Text

Description

This form is used when the Assignor transfers, assigns and conveys to Assignee a production payment measured by the quantity of production. Title: Exploring New Mexico Assignment of Production Payment Measured by Quantity of Production Keywords: New Mexico, Assignment of Production Payment, Quantity of Production, Types Introduction: New Mexico has gained recognition as one of the prominent states in the United States for its rich energy resources. In the realm of oil and gas production, the New Mexico Assignment of Production Payment Measured by Quantity of Production plays a significant role. This detailed description will delve into the concept of this assignment and shed light on its different types and implications. 1. Definition of New Mexico Assignment of Production Payment Measured by Quantity of Production: The New Mexico Assignment of Production Payment Measured by Quantity of Production refers to a legal mechanism through which an entity, often an oil and gas producer, assigns a portion of their production revenues to a third party, in exchange for upfront capital or other financial considerations. This assignment is measured by the quantity of oil or gas produced. Types of New Mexico Assignment of Production Payment Measured by Quantity of Production: 1.1 Working Interest (WI) Assignment: In this type of assignment, the assignee receives a specific percentage of the monthly oil or gas revenues based on the assigned working interest of the producing property. The proportionate quantity of production determines the payment amount. 1.2 Overriding Royalty Interest (ORRIS) Assignment: Unlike the working interest assignment, the ORRIS assignment grants the assignee a fixed percentage of production revenues without any operational or development costs. The quantity of oil or gas produced determines the payment, which primarily relies on the assigned overriding royalty interest. 1.3 Net Revenue Interest (NRI) Assignment: The NRI assignment involves a set percentage of the net revenues generated from the production after deducting the landowner's royalty share. This assignment type may be used as a form of financing, with the quantity of production directly affecting the payment received. Implications and Considerations: — In New Mexico, Assignment of Production Payment Measured by Quantity of Production allows producers to obtain upfront capital to invest in exploration, infrastructure, or other projects. — The assigned payment is often based on the quantity of oil or gas produced, making it crucial for parties involved to properly assess reserves and production potential. — Assignments should adhere to the regulations and guidelines set forth by the New Mexico Oil Conservation Division and other relevant authorities. — Legal agreements defining the terms, duration, and conditions of assignments should be carefully drafted to protect the rights and interests of both parties. Conclusion: The New Mexico Assignment of Production Payment Measured by Quantity of Production serves as a mechanism to facilitate financing and resources for oil and gas operators in the state. Understanding the different types and implications of these assignments is crucial for those involved in the industry to make informed decisions and navigate the complex landscape of energy production and financing in New Mexico.

Title: Exploring New Mexico Assignment of Production Payment Measured by Quantity of Production Keywords: New Mexico, Assignment of Production Payment, Quantity of Production, Types Introduction: New Mexico has gained recognition as one of the prominent states in the United States for its rich energy resources. In the realm of oil and gas production, the New Mexico Assignment of Production Payment Measured by Quantity of Production plays a significant role. This detailed description will delve into the concept of this assignment and shed light on its different types and implications. 1. Definition of New Mexico Assignment of Production Payment Measured by Quantity of Production: The New Mexico Assignment of Production Payment Measured by Quantity of Production refers to a legal mechanism through which an entity, often an oil and gas producer, assigns a portion of their production revenues to a third party, in exchange for upfront capital or other financial considerations. This assignment is measured by the quantity of oil or gas produced. Types of New Mexico Assignment of Production Payment Measured by Quantity of Production: 1.1 Working Interest (WI) Assignment: In this type of assignment, the assignee receives a specific percentage of the monthly oil or gas revenues based on the assigned working interest of the producing property. The proportionate quantity of production determines the payment amount. 1.2 Overriding Royalty Interest (ORRIS) Assignment: Unlike the working interest assignment, the ORRIS assignment grants the assignee a fixed percentage of production revenues without any operational or development costs. The quantity of oil or gas produced determines the payment, which primarily relies on the assigned overriding royalty interest. 1.3 Net Revenue Interest (NRI) Assignment: The NRI assignment involves a set percentage of the net revenues generated from the production after deducting the landowner's royalty share. This assignment type may be used as a form of financing, with the quantity of production directly affecting the payment received. Implications and Considerations: — In New Mexico, Assignment of Production Payment Measured by Quantity of Production allows producers to obtain upfront capital to invest in exploration, infrastructure, or other projects. — The assigned payment is often based on the quantity of oil or gas produced, making it crucial for parties involved to properly assess reserves and production potential. — Assignments should adhere to the regulations and guidelines set forth by the New Mexico Oil Conservation Division and other relevant authorities. — Legal agreements defining the terms, duration, and conditions of assignments should be carefully drafted to protect the rights and interests of both parties. Conclusion: The New Mexico Assignment of Production Payment Measured by Quantity of Production serves as a mechanism to facilitate financing and resources for oil and gas operators in the state. Understanding the different types and implications of these assignments is crucial for those involved in the industry to make informed decisions and navigate the complex landscape of energy production and financing in New Mexico.