Oklahoma Assignment of Overriding Royalty Interest Limited As to Depth

• Category: Oil Gas and Minerals - Assignments
• State: Multi-State
• Control #: US-OG-290
• 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 and all oil, gas and other minerals produced, saved and sold from the Lease and Land, which is limited to depth. Oklahoma Assignment of Overriding Royalty Interest Limited As to Depth (OAORI-LAD) is a legal instrument commonly used in the oil and gas industry to transfer the ownership rights of overriding royalty interests within specified depth limitations. It specifically applies to mineral owners in Oklahoma seeking to maintain their rights to receive royalty payments from oil and gas production within a specific depth range. When a mineral owner enters into an OAORI-LAD agreement, they are essentially assigning their overriding royalty interest to another party, typically an oil and gas operator or a leaseholder. This arrangement enables the assignee to receive a portion of the revenue generated from the production of oil and gas from the specified depths, while the original owner retains the rights to any production above or below the designated depths. There are two primary types of Oklahoma Assignment of Overriding Royalty Interest Limited As to Depth: 1. Vertical Limited Assignment: This type of OAORI-LAD restricts the overriding royalty interest assignment to a specific vertical depth interval. For example, a mineral owner may choose to assign their overriding royalty interest for depths ranging from 1,000 feet to 2,000 feet. This means that they will not receive any royalty payments for oil and gas production above or below this designated depth range. 2. Horizontal Limited Assignment: In contrast to a vertical limited assignment, a horizontal limited assignment pertains to a specific horizontal interval within a defined area. It is commonly used in areas with extensive shale formations, such as the prolific Navarro Basin or the SCOOP/STACK plays in Oklahoma. This type of OAORI-LAD ensures that the overriding royalty interest is only assigned for a specific target zone, allowing the mineral owner to retain their rights to potential production in other formations. Oklahoma Assignment of Overriding Royalty Interest Limited As to Depth agreements are essential for both mineral owners and oil and gas operators as they provide clarity and specificity regarding rights and responsibilities in regard to royalty interests within defined depth limitations. By clearly defining the assigned depth intervals, these agreements help to simplify the ownership structure and maximize the efficiency of revenue distribution in the extraction of oil and gas resources in Oklahoma.

Oklahoma Assignment of Overriding Royalty Interest Limited As to Depth (OAORI-LAD) is a legal instrument commonly used in the oil and gas industry to transfer the ownership rights of overriding royalty interests within specified depth limitations. It specifically applies to mineral owners in Oklahoma seeking to maintain their rights to receive royalty payments from oil and gas production within a specific depth range. When a mineral owner enters into an OAORI-LAD agreement, they are essentially assigning their overriding royalty interest to another party, typically an oil and gas operator or a leaseholder. This arrangement enables the assignee to receive a portion of the revenue generated from the production of oil and gas from the specified depths, while the original owner retains the rights to any production above or below the designated depths. There are two primary types of Oklahoma Assignment of Overriding Royalty Interest Limited As to Depth: 1. Vertical Limited Assignment: This type of OAORI-LAD restricts the overriding royalty interest assignment to a specific vertical depth interval. For example, a mineral owner may choose to assign their overriding royalty interest for depths ranging from 1,000 feet to 2,000 feet. This means that they will not receive any royalty payments for oil and gas production above or below this designated depth range. 2. Horizontal Limited Assignment: In contrast to a vertical limited assignment, a horizontal limited assignment pertains to a specific horizontal interval within a defined area. It is commonly used in areas with extensive shale formations, such as the prolific Navarro Basin or the SCOOP/STACK plays in Oklahoma. This type of OAORI-LAD ensures that the overriding royalty interest is only assigned for a specific target zone, allowing the mineral owner to retain their rights to potential production in other formations. Oklahoma Assignment of Overriding Royalty Interest Limited As to Depth agreements are essential for both mineral owners and oil and gas operators as they provide clarity and specificity regarding rights and responsibilities in regard to royalty interests within defined depth limitations. By clearly defining the assigned depth intervals, these agreements help to simplify the ownership structure and maximize the efficiency of revenue distribution in the extraction of oil and gas resources in Oklahoma.