The Pennsylvania Assignment of Overriding Royalty Interest (Non-Producing, Single Lease, Reserves Right to Pool) is a legal document that transfers a portion of a royalty interest to another party in relation to an oil or gas lease in Pennsylvania. This assignment specifically applies to non-producing leases where the lessee reserves the right to pool multiple mineral interests. In this type of assignment, the assigning party grants an overriding royalty interest to the assignee. An overriding royalty interest entitles the assignee to a share of the production revenues derived from the leased property, typically free of any costs associated with exploration, drilling, or operation. However, it's important to note that this agreement specifically applies to non-producing leases, meaning that oil or gas extraction has not yet commenced on the leased property. By signing the Pennsylvania Assignment of Overriding Royalty Interest (Non-Producing, Single Lease, Reserves Right to Pool), the assigning party is essentially transferring a percentage of their royalty interest in the lease to the assignee. This assignment does not grant ownership of the mineral rights themselves, but rather the right to receive a portion of the royalty payments generated by the lease. The reserves right to pool clause within this assignment allows the lessee to combine or pool the assigned overriding royalty interest with other mineral interests within the same lease. Pooling is a common practice in the oil and gas industry, where multiple leased tracts of land are merged into a single production unit. This consolidation enhances operational efficiency, reduces costs, and optimizes the extraction of hydrocarbon resources. Different types or variations of Pennsylvania Assignment of Overriding Royalty Interest (Non-Producing, Single Lease, Reserves Right to Pool) may exist based on specific terms and conditions. These variations can include the duration of the assignment, the percentage of the overriding royalty interest assigned, specific provisions related to pooling, and any restrictions or limitations placed on either the assigning or assignee parties. In conclusion, the Pennsylvania Assignment of Overriding Royalty Interest (Non-Producing, Single Lease, Reserves Right to Pool) is a legal agreement that allows for the transfer of a portion of a royalty interest in a non-producing oil or gas lease. This assignment reserves the right to pool the assigned interest with other mineral interests within the same lease, enabling efficient resource extraction. Various types or variations of this assignment may exist, each with specific terms and conditions tailored to the needs of the parties involved.
Pennsylvania Assignment of Overriding Royalty Interest (Non-Producing, Single Lease, Reserves Right to Pool)
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FAQ
An overriding royalty interest (ORRI) is an interest carved out of a working interest. It is: A percentage of gross production that is not charged with any expenses of exploring, developing, producing, and operating a well.
An overriding royalty interest (ORRI) is an undivided interest in a mineral lease giving the holder the right to a proportional share (receive revenue) of the sale of oil and gas produced. The ORRI is carved out of the working interest or lease.
Calculating Overriding Royalty Interest An ORRI is a straight percentage. For example, a 2% override would appear on the royalty statement as 0.02 interest in the proceeds from the sale of the leased hydrocarbons.
An overriding royalty interest (ORRI) is an undivided interest in a mineral lease giving the holder the right to a proportional share (receive revenue) of the sale of oil and gas produced. The ORRI is carved out of the working interest or lease.
ORRIs are created out of the working interest in a property and do not affect mineral owners. An overriding royalty interest (ORRI) is often kept or assigned to a geologist, landman, brokerage, or any entity that was able to reserve an interest in the properties.
Overriding Royalty Interest Conveyance means an assignment, in form and substance acceptable to Lender, pursuant to which Borrower grants in favor of Lender an overriding royalty interest equal to six and one-fourth percent (6.25%) of Hydrocarbons produced, saved and sold or used off the premises of the relevant Lease, ...
A gross overriding royalty entitles the owner to a share of the market price of the mined product as at the time they are available to be taken less any costs incurred by the operator to bring the product to the point of sale.
You may convey overriding royalty interest on either an Assignment of Record Title Interest (Form 3000-3), a Transfer of Operating Rights (Form 3000-3a), or on a private assignment. We only require filing of one signed copy per assignment plus a nonrefundable filing fee found at 43 CFR 3000.12.
