This form is used when an Assignor assigns, transfers, and conveys to Assignee an overriding royalty interest in the Lease and all of the oil and gas produced, saved and marketed from the Lease, out of the interest owned by Assignor, with proportionate reduction (the Override ).
A Rhode Island Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is a legal document that transfers ownership of a portion of the overriding royalty interest (ORRIS) from one party to another in the state of Rhode Island. The ORRIS is a fractional interest in the production from an oil and gas lease, which means that the royalty owner or assignee receives a percentage of the revenue generated from the lease. The value of the ORRIS depends on factors such as the lease terms, oil and gas prices, and production levels. In a Rhode Island Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction, the assignment is made for a single lease, meaning that it applies to a specific lease agreement rather than all leases owned by the assignor. The proportionate reduction aspect implies that the interest being assigned is a fraction or percentage of the total ORRIS. This type of assignment can occur for various reasons, such as when a royalty owner wants to sell a portion of their ORRIS to generate immediate cash flow or when multiple parties collectively own an ORRIS and decide to redistribute their interests. Rhode Island Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction agreements may have additional variations or subtypes, including: 1. Partial Assignment of Overriding Royalty Interest: This refers to situations where only a portion of the ORRIS is being assigned rather than the full interest. For example, if an assignor owns a 10% ORRIS, they may choose to assign 5% to another party. 2. Temporary Assignment of Overriding Royalty Interest: In some cases, the assignment may be temporary, meaning that the assignee has the right to receive the assigned ORRIS for a specified period. After the expiration of the term, the interest reverts to the original owner. 3. Assignment of Overriding Royalty Interest with Diversionary Clause: This type of assignment includes a diversionary clause that determines what happens to the assigned ORRIS if certain conditions are met. For instance, if the assignee fails to meet certain performance obligations or if there is a cessation of production on the lease, the ORRIS may revert to the assignor. Overall, a Rhode Island Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is a legally binding agreement that allows the transfer of a portion of the ORRIS from one party to another in Rhode Island, with various potential variations depending on specific circumstances and preferences of the involved parties.A Rhode Island Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is a legal document that transfers ownership of a portion of the overriding royalty interest (ORRIS) from one party to another in the state of Rhode Island. The ORRIS is a fractional interest in the production from an oil and gas lease, which means that the royalty owner or assignee receives a percentage of the revenue generated from the lease. The value of the ORRIS depends on factors such as the lease terms, oil and gas prices, and production levels. In a Rhode Island Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction, the assignment is made for a single lease, meaning that it applies to a specific lease agreement rather than all leases owned by the assignor. The proportionate reduction aspect implies that the interest being assigned is a fraction or percentage of the total ORRIS. This type of assignment can occur for various reasons, such as when a royalty owner wants to sell a portion of their ORRIS to generate immediate cash flow or when multiple parties collectively own an ORRIS and decide to redistribute their interests. Rhode Island Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction agreements may have additional variations or subtypes, including: 1. Partial Assignment of Overriding Royalty Interest: This refers to situations where only a portion of the ORRIS is being assigned rather than the full interest. For example, if an assignor owns a 10% ORRIS, they may choose to assign 5% to another party. 2. Temporary Assignment of Overriding Royalty Interest: In some cases, the assignment may be temporary, meaning that the assignee has the right to receive the assigned ORRIS for a specified period. After the expiration of the term, the interest reverts to the original owner. 3. Assignment of Overriding Royalty Interest with Diversionary Clause: This type of assignment includes a diversionary clause that determines what happens to the assigned ORRIS if certain conditions are met. For instance, if the assignee fails to meet certain performance obligations or if there is a cessation of production on the lease, the ORRIS may revert to the assignor. Overall, a Rhode Island Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is a legally binding agreement that allows the transfer of a portion of the ORRIS from one party to another in Rhode Island, with various potential variations depending on specific circumstances and preferences of the involved parties.
