This provision provides for the assignor to except from this assignment and reserve an overriding royalty interest of all oil, gas, casinghead gas, and other minerals that may be produced from the lands under the terms of the Leases that are the subject of this assignment.
New Mexico Reservation of Overriding Royalty Interest (NMR ORI) is a legal term used in the oil and gas industry, specifically in the context of mineral rights ownership and royalty interests in New Mexico. It refers to a type of mineral interest reservation that allows the granter to retain a certain percentage or fraction of royalty interest in any future leases or production activities. Keywords: New Mexico Reservation of Overriding Royalty Interest, NMR ORI, oil and gas industry, mineral rights ownership, royalty interests, leases, production activities. Types of New Mexico Reservation of Overriding Royalty Interest: 1. Fractional Overriding Royalty Interest: This occurs when the granter reserves a specific fraction or percentage of royalty interest, such as 1/16th or 1/8th, on the production revenues generated from the leased property or oil and gas activities. 2. Fixed Overriding Royalty Interest: In this type, the granter retains a fixed, predetermined royalty interest, regardless of any changes in production activity or the overall value of the lease. For example, the granter may reserve a fixed 2% royalty interest that remains constant throughout the lease term. 3. Variable Overriding Royalty Interest: Unlike the fixed overriding royalty interest, this type allows the granter to reserve a royalty interest that fluctuates based on certain predefined conditions. For instance, the granter may reserve a variable royalty interest of 1.5% when oil prices exceed a certain threshold. 4. Term Overriding Royalty Interest: In some cases, the granter may retain a royalty interest only for a specific period, often associated with the initial term of a lease. After the expiration of the defined term, the overriding royalty interest extinguishes or reverts to the lessee. Overall, the New Mexico Reservation of Overriding Royalty Interest provides a mechanism for mineral estate owners to retain a portion of the royalty interest while allowing the lessee to explore and develop the leased property. Such reservations can have a significant impact on the overall revenue generated and are an essential aspect of negotiating mineral rights agreements in New Mexico.New Mexico Reservation of Overriding Royalty Interest (NMR ORI) is a legal term used in the oil and gas industry, specifically in the context of mineral rights ownership and royalty interests in New Mexico. It refers to a type of mineral interest reservation that allows the granter to retain a certain percentage or fraction of royalty interest in any future leases or production activities. Keywords: New Mexico Reservation of Overriding Royalty Interest, NMR ORI, oil and gas industry, mineral rights ownership, royalty interests, leases, production activities. Types of New Mexico Reservation of Overriding Royalty Interest: 1. Fractional Overriding Royalty Interest: This occurs when the granter reserves a specific fraction or percentage of royalty interest, such as 1/16th or 1/8th, on the production revenues generated from the leased property or oil and gas activities. 2. Fixed Overriding Royalty Interest: In this type, the granter retains a fixed, predetermined royalty interest, regardless of any changes in production activity or the overall value of the lease. For example, the granter may reserve a fixed 2% royalty interest that remains constant throughout the lease term. 3. Variable Overriding Royalty Interest: Unlike the fixed overriding royalty interest, this type allows the granter to reserve a royalty interest that fluctuates based on certain predefined conditions. For instance, the granter may reserve a variable royalty interest of 1.5% when oil prices exceed a certain threshold. 4. Term Overriding Royalty Interest: In some cases, the granter may retain a royalty interest only for a specific period, often associated with the initial term of a lease. After the expiration of the defined term, the overriding royalty interest extinguishes or reverts to the lessee. Overall, the New Mexico Reservation of Overriding Royalty Interest provides a mechanism for mineral estate owners to retain a portion of the royalty interest while allowing the lessee to explore and develop the leased property. Such reservations can have a significant impact on the overall revenue generated and are an essential aspect of negotiating mineral rights agreements in New Mexico.
