New Mexico Assignment of Production Payment Measured by Value Received

• Category: Oil Gas and Minerals - Assignments
• State: Multi-State
• Control #: US-OG-294
• Format: Word; Rich Text

Description

This form is used when Assignor transfers, assigns, and conveys to Assignee a production payment measureed by value. New Mexico Assignment of Production Payment Measured by Value Received is a legal agreement used in the oil and gas industry. It is a transaction wherein the right to receive future production revenue or payments from a working interest in a well or lease is transferred from one party to another. This transfer provides immediate cash flow to the assignor (the party transferring the payment rights) and allows the assignee (the party receiving the payment rights) to benefit from the ongoing production. This type of assignment is measured by the value received, meaning that the assignee's entitlement to future payments is based on the actual revenue generated by the assigned working interest. The value received may vary based on the production performance of the underlying asset, market conditions, and any applicable royalties or expenses. Different types of New Mexico Assignment of Production Payment Measured by Value Received can exist based on the specific terms and conditions agreed upon by the involved parties. Here are a few variations: 1. Absolute Assignment: In this type of assignment, the assignor transfers all rights to the production payment without any retention or interest in the revenue. The assignee becomes the sole recipient of the production revenue. 2. Partial Assignment: In this scenario, the assignor transfers only a portion of the production payment rights while retaining the remaining portion for themselves. The assignee receives a proportional share of the revenue generated. 3. Limited Time Assignment: This type of assignment involves a temporary transfer of the production payment rights for a specific period. After the agreed-upon timeframe, the rights revert to the assignor. 4. Assignment with Clawback Right: In this case, the assignor transfers the production payment rights but retains the option to repurchase those rights in the future. This can be exercised based on predefined conditions, such as meeting certain production milestones or at a specific price. It is crucial for all parties involved to clearly define the terms of the assignment, including the percentage of production payments transferred, any detainment rights, restrictions, or obligations. This ensures a fair and transparent agreement that protects the interests of both the assignor and assignee.

New Mexico Assignment of Production Payment Measured by Value Received is a legal agreement used in the oil and gas industry. It is a transaction wherein the right to receive future production revenue or payments from a working interest in a well or lease is transferred from one party to another. This transfer provides immediate cash flow to the assignor (the party transferring the payment rights) and allows the assignee (the party receiving the payment rights) to benefit from the ongoing production. This type of assignment is measured by the value received, meaning that the assignee's entitlement to future payments is based on the actual revenue generated by the assigned working interest. The value received may vary based on the production performance of the underlying asset, market conditions, and any applicable royalties or expenses. Different types of New Mexico Assignment of Production Payment Measured by Value Received can exist based on the specific terms and conditions agreed upon by the involved parties. Here are a few variations: 1. Absolute Assignment: In this type of assignment, the assignor transfers all rights to the production payment without any retention or interest in the revenue. The assignee becomes the sole recipient of the production revenue. 2. Partial Assignment: In this scenario, the assignor transfers only a portion of the production payment rights while retaining the remaining portion for themselves. The assignee receives a proportional share of the revenue generated. 3. Limited Time Assignment: This type of assignment involves a temporary transfer of the production payment rights for a specific period. After the agreed-upon timeframe, the rights revert to the assignor. 4. Assignment with Clawback Right: In this case, the assignor transfers the production payment rights but retains the option to repurchase those rights in the future. This can be exercised based on predefined conditions, such as meeting certain production milestones or at a specific price. It is crucial for all parties involved to clearly define the terms of the assignment, including the percentage of production payments transferred, any detainment rights, restrictions, or obligations. This ensures a fair and transparent agreement that protects the interests of both the assignor and assignee.