This form is used when the Assignor transfers, assigns, and conveys to Assignee, as a production payment, a percentage of 8/8 of all oil, gas, and other minerals produced and saved from the Lands under the terms of the Lease and any renewals or extensions of the Lease which are obtained by Assignor or Assignor's successors and/or assigns.
A New York Assignment of Production Payment by Lessee to Third Party is a legal document that transfers the right to receive production payments from an oil or gas lease to a third party. This assignment serves as a form of collateral or a financial arrangement between the lessee and the third party. In this assignment, the lessee (the party responsible for the exploration and production of oil or gas) assigns their right to receive production payments to the third party. Production payments are typically a predetermined percentage of the revenue generated from the sale of oil or gas produced from the lease. The New York Assignment of Production Payment by Lessee to Third Party is an important agreement that protects the interests of the third party by ensuring the lessee's obligations will be fulfilled. It offers a level of security to the third party as they receive the assigned production payments directly, bypassing the lessee. Different types of New York Assignment of Production Payment by Lessee to Third Party may include: 1. Absolute Assignment: This type of assignment completely transfers all rights to receive production payments to the third party. The lessee loses any control or entitlement to these payments once the assignment is made. 2. Partial Assignment: In a partial assignment, the lessee transfers only a portion of their rights to receive production payments to the third party. This allows the lessee to maintain some control and continue to receive a portion of the payments. 3. Revocable Assignment: A revocable assignment grants the lessee the ability to revoke or cancel the assignment of production payments to the third party under certain circumstances. This type of assignment provides flexibility to the lessee. 4. Irrevocable Assignment: An irrevocable assignment, on the other hand, does not allow the lessee to cancel or revoke the assignment once it is made. The third party is assured of receiving the assigned production payments without any interference. It is important to consult with legal professionals specializing in oil and gas leases and assignments to ensure that the New York Assignment of Production Payment by Lessee to Third Party accurately reflects the intentions and objectives of all parties involved.
