New Mexico Assignment of After Payout Working Interest and the Right to Convert Overriding Royalty Interest to A Working Interest

• Category: Oil Gas and Minerals - Assignments
• State: Multi-State
• Control #: US-OG-298
• Format: Word; Rich Text

Description

This form is used when an Assignor desires to assign to an Assignee all rights in Agreements. New Mexico Assignment of After Payout Working Interest and the Right to Convert Overriding Royalty Interest to A Working Interest is a legal document that outlines the transfer of rights and interests in oil and gas properties located in New Mexico. It specifically focuses on the assignment of working interest and the conversion of overriding royalty interest (ORRIS) into a working interest. Keywords: New Mexico, Assignment, After Payout Working Interest, Right to Convert, Overriding Royalty Interest, Working Interest This assignment agreement is commonly used in the oil and gas industry, particularly in New Mexico, where there is abundant production of oil and gas resources. It allows for the transfer of working interest, which refers to the percentage of ownership and operating rights in an oil and gas lease or well. The "After Payout" aspect of this assignment refers to the circumstances under which the assignment takes effect. It typically applies after the costs of drilling, operating, and other expenditures have been recouped, known as payout. Once the costs are recovered, the assignor transfers their working interest to the assignee. Furthermore, this agreement provides the right to convert overriding royalty interest (ORRIS) into a working interest. An ORRIS is a share of production or future revenues, usually expressed as a percentage, that is granted to someone other than the working interest owner. The right to convert allows the holder of ORRIS to convert their interest into a working interest, which grants them direct ownership and operating rights. In New Mexico, there may be different types or variations of the Assignment of After Payout Working Interest and the Right to Convert Overriding Royalty Interest to A Working Interest, including: 1. Full Assignment: This type of assignment transfers the entire working interest after payout, along with the right to convert any overriding royalty interest to a working interest. 2. Partial Assignment: In this case, only a portion of the working interest is assigned, enabling a partial transfer of ownership and operating rights. The right to convert overriding royalty interest may or may not be included, depending on the agreement. 3. Limited Conversion Rights: Some assignments may limit the right to convert overriding royalty interest in setting specific conditions or limitations. These may include a timeframe for conversion or specific events triggering the right to convert. Overall, the New Mexico Assignment of After Payout Working Interest and the Right to Convert Overriding Royalty Interest to A Working Interest is essential for establishing clear ownership rights and facilitating the transfer of interests in the oil and gas industry. It serves as a legally binding agreement that is mutually beneficial for both parties involved.

New Mexico Assignment of After Payout Working Interest and the Right to Convert Overriding Royalty Interest to A Working Interest is a legal document that outlines the transfer of rights and interests in oil and gas properties located in New Mexico. It specifically focuses on the assignment of working interest and the conversion of overriding royalty interest (ORRIS) into a working interest. Keywords: New Mexico, Assignment, After Payout Working Interest, Right to Convert, Overriding Royalty Interest, Working Interest This assignment agreement is commonly used in the oil and gas industry, particularly in New Mexico, where there is abundant production of oil and gas resources. It allows for the transfer of working interest, which refers to the percentage of ownership and operating rights in an oil and gas lease or well. The "After Payout" aspect of this assignment refers to the circumstances under which the assignment takes effect. It typically applies after the costs of drilling, operating, and other expenditures have been recouped, known as payout. Once the costs are recovered, the assignor transfers their working interest to the assignee. Furthermore, this agreement provides the right to convert overriding royalty interest (ORRIS) into a working interest. An ORRIS is a share of production or future revenues, usually expressed as a percentage, that is granted to someone other than the working interest owner. The right to convert allows the holder of ORRIS to convert their interest into a working interest, which grants them direct ownership and operating rights. In New Mexico, there may be different types or variations of the Assignment of After Payout Working Interest and the Right to Convert Overriding Royalty Interest to A Working Interest, including: 1. Full Assignment: This type of assignment transfers the entire working interest after payout, along with the right to convert any overriding royalty interest to a working interest. 2. Partial Assignment: In this case, only a portion of the working interest is assigned, enabling a partial transfer of ownership and operating rights. The right to convert overriding royalty interest may or may not be included, depending on the agreement. 3. Limited Conversion Rights: Some assignments may limit the right to convert overriding royalty interest in setting specific conditions or limitations. These may include a timeframe for conversion or specific events triggering the right to convert. Overall, the New Mexico Assignment of After Payout Working Interest and the Right to Convert Overriding Royalty Interest to A Working Interest is essential for establishing clear ownership rights and facilitating the transfer of interests in the oil and gas industry. It serves as a legally binding agreement that is mutually beneficial for both parties involved.