Ohio Assignment of Overriding Royalty Interest to Become Effective At Payout, With Payout Based on Volume of Oil Produced

• Category: Oil Gas and Minerals - Assignments
• State: Multi-State
• Control #: US-OG-283
• Format: Word; Rich Text

Description

This form is used by the Assignor to transfer, assign, and convey to Assignee an overriding royalty interest in a Lease, to be effective at payout. An Ohio Assignment of Overriding Royalty Interest to Become Effective At Payout, With Payout Based on Volume of Oil Produced is a legal document used in the oil and gas industry. It involves the transfer of a portion of the royalty interest associated with an oil and gas lease to another party, known as the assignee. This assignment becomes effective once certain conditions are met, typically when the assigned well reaches payout status. In this type of arrangement, the overriding royalty interest (ORRIS) is calculated based on the volume of oil produced. This means that the assignor, the original owner of the ORRIS, will receive a percentage of the oil revenue generated by the assigned well. The percentage is usually negotiated between the assignor and assignee and is contingent upon the volume of oil produced. It is worth noting that there can be different variations or types of Ohio Assignment of Overriding Royalty Interest to Become Effective At Payout, With Payout Based on Volume of Oil Produced, depending on the specific terms and conditions agreed upon by the parties involved. Some examples include: 1. Graduated Incremental ORRIS: This type of assignment involves a structured increase in the ORRIS percentage as the production volume crosses certain predefined thresholds. For instance, the assignor may receive a 10% ORRIS until the well reaches 5,000 barrels of production, after which it increases to 15% for the subsequent 5,000 barrels, and so on. 2. Indexed ORRIS: In this type, the assignor's ORRIS is linked to an external index or benchmark. For example, the assigned ORRIS could be tied to the price of oil, natural gas, or a combination of both. This ensures that the assignor's payout is influenced by market conditions. 3. Cost Recovery ORRIS: This variation allows the assignee to recover certain costs associated with drilling and production before the assignor starts receiving their ORRIS payout. Typically, the assignee deducts these costs from the assignor's ORRIS share until the assigned well achieves payout, after which the assignor starts receiving their full ORRIS percentage. Regardless of the specific type, an Ohio Assignment of Overriding Royalty Interest to Become Effective At Payout, With Payout Based on Volume of Oil Produced is designed to provide a framework for assigning a portion of the ORRIS to another party, with the assignor benefiting from the volume of oil produced.

An Ohio Assignment of Overriding Royalty Interest to Become Effective At Payout, With Payout Based on Volume of Oil Produced is a legal document used in the oil and gas industry. It involves the transfer of a portion of the royalty interest associated with an oil and gas lease to another party, known as the assignee. This assignment becomes effective once certain conditions are met, typically when the assigned well reaches payout status. In this type of arrangement, the overriding royalty interest (ORRIS) is calculated based on the volume of oil produced. This means that the assignor, the original owner of the ORRIS, will receive a percentage of the oil revenue generated by the assigned well. The percentage is usually negotiated between the assignor and assignee and is contingent upon the volume of oil produced. It is worth noting that there can be different variations or types of Ohio Assignment of Overriding Royalty Interest to Become Effective At Payout, With Payout Based on Volume of Oil Produced, depending on the specific terms and conditions agreed upon by the parties involved. Some examples include: 1. Graduated Incremental ORRIS: This type of assignment involves a structured increase in the ORRIS percentage as the production volume crosses certain predefined thresholds. For instance, the assignor may receive a 10% ORRIS until the well reaches 5,000 barrels of production, after which it increases to 15% for the subsequent 5,000 barrels, and so on. 2. Indexed ORRIS: In this type, the assignor's ORRIS is linked to an external index or benchmark. For example, the assigned ORRIS could be tied to the price of oil, natural gas, or a combination of both. This ensures that the assignor's payout is influenced by market conditions. 3. Cost Recovery ORRIS: This variation allows the assignee to recover certain costs associated with drilling and production before the assignor starts receiving their ORRIS payout. Typically, the assignee deducts these costs from the assignor's ORRIS share until the assigned well achieves payout, after which the assignor starts receiving their full ORRIS percentage. Regardless of the specific type, an Ohio Assignment of Overriding Royalty Interest to Become Effective At Payout, With Payout Based on Volume of Oil Produced is designed to provide a framework for assigning a portion of the ORRIS to another party, with the assignor benefiting from the volume of oil produced.