This form is used when an Assignor transfers, assigns and conveys to Assignee an overriding royalty interest in all of the oil, gas, and other minerals produced, saved, and marketed from all of the Lands and Leases equal to a determined amount (the Override ), reserving the right to pool the assigned interest.
Title: The Oklahoma Assignment of Overriding Royalty Interest: Understanding Assignor's Rights to Pool the Assigned Interest — Short Form Introduction: In the realm of oil and gas royalties, understanding the intricacies of an Oklahoma Assignment of Overriding Royalty Interest is crucial. This article delves into the specific scenario where the Assignor reserves the right to pool the assigned interest and provides a detailed description of this agreement type. Read on to explore the nuances of this arrangement and gain insights into its various forms. 1. Definition and Purpose: The Oklahoma Assignment of Overriding Royalty Interest is a legal agreement wherein the Assignor transfers a portion of their royalty interest to the Assignee. The purpose is to create a contractual arrangement that ensures the Assignee's right to receive a percentage of the proceeds from the oil or gas production on the assigned land. 2. Assignor Reserving the Right to Pool: In certain cases, the Assignor may reserve the right to pool the assigned interest. This means the Assignor retains the ability to combine the assigned interest with other interests they may hold, effectively pooling multiple interests into one unit for more efficient extraction. This can be significant in optimizing revenue generation and maximizing the potential of the assigned interest. 3. Short Form Oklahoma Assignment of Overriding Royalty Interest: This specific type of agreement refers to a condensed or simplified version of the Assignment of Overriding Royalty Interest. It serves as a framework to outline the primary terms and conditions without excessive elaboration. The short-form variation allows for streamlined documentation, making it more accessible and easier to comprehend for the parties involved. 4. Key Elements of the Short Form Agreement: a. Identification of Parties: The agreement must clearly identify the Assignor and Assignee, providing relevant contact information. b. Description of Assigned Interest: Detailed information about the assigned interest, including property details, legal descriptions, and the percentage being assigned. c. Reservation to Pool: The Assignor's reservation to pool the assigned interest should be explicitly stated, with any associated limitations or conditions. d. Obligations and Rights: Mention the parties' respective obligations, rights, and responsibilities regarding lease operations, royalty payments, and other relevant factors. e. Indemnification and Liability: Include provisions covering indemnification, liability, and obligations to mitigate damages. f. Governing Law and Severability: Specify the governing law and include a severability clause to address potential conflicts or invalidity of certain provisions. g. Signatures and Execution: Finally, ensure both parties sign and date the agreement, formally executing the assignment. Types of Oklahoma Assignment of Overriding Royalty Interest when Assignor Reserves the Right to Pool the Assigned Interest — Short Form (if applicable)— - Standard Short Form: This encompasses the general terms and conditions mentioned above without any additional provisions or amendments. — Modified Short Form: This variant includes additional clauses or negotiated terms to meet specific requirements or conditions based on the Assignor's and Assignee's mutual agreement. Conclusion: The Oklahoma Assignment of Overriding Royalty Interest when the Assignor reserves the right to pool the assigned interest is a significant agreement in the oil and gas industry. This short-form agreement allows for a concise yet comprehensive framework to address the crucial elements involved in the assignment process. Understanding and leveraging the various types and provisions within this agreement ensures a smooth transfer of rights and responsibilities between the Assignor and Assignee.
