The form is used when the Assignor transfers, assigns, and conveys to Assignee an overriding royalty interest in the Leases and all of the oil, gas and other minerals produced, saved and marketed from the Lease equal to a pecentage of 8/8 (the Override ).
Nevada Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction is a legal agreement commonly used in the oil and gas industry. This contract allows the owner of an overriding royalty interest (ORRIS) in an oil or gas lease to assign or transfer their interest to another party in the state of Nevada, without any reduction in proportionate shares. An overriding royalty interest owner is an individual or entity that holds a percentage interest in the revenue derived from the production of oil and gas from a particular lease. This interest is usually created by a separate agreement and entitles the owner to receive a specific portion of the revenue generated by the lease, typically without any obligation to pay for the costs of exploration, drilling, or production. In Nevada, the Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction serves as a means for ORRIS owners to transfer their rights and benefits to another party, while ensuring that the proportionate allocation of revenue remains unchanged. This means that the assignee will receive the same percentage of revenue as the assignor. There may be different types of Nevada Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction, depending on the specific terms and conditions agreed upon by the parties involved. These variations might include provisions related to the duration of the assignment, lease expiration or renewal, payment terms, and any rights or restrictions on the assignee's ability to further assign or encumber the overriding royalty interest. When entering into such an agreement, it is important for both parties to carefully review and understand the terms and obligations outlined in the document. Seeking the assistance of legal professionals experienced in oil and gas transactions is highly recommended ensuring compliance with Nevada's laws and regulations. In summary, the Nevada Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction is a legal instrument that allows ORRIS owners in the state to transfer their interests without any reduction in their proportionate share of revenue. This agreement facilitates the efficient transfer of oil and gas interests while maintaining the stability and consistency of revenue allocation.
