South Dakota Assignment of Overriding Royalty Interest with Proportionate Reduction

• Category: Oil Gas and Minerals - Assignments
• State: Multi-State
• Control #: US-OG-282
• 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 which may be proportionately reduced. The South Dakota Assignment of Overriding Royalty Interest with Proportionate Reduction is a legal agreement that pertains to the transfer of overriding royalty interests (ORI's) in oil and gas properties located within the state of South Dakota. This document outlines the process of assigning ORI's from one party to another, while also incorporating proportionate reduction provisions to ensure fair distribution of royalties among multiple parties. An overriding royalty interest is an interest in the production of oil and gas that is separate from the working interest held by the lessee or operator. It grants the ORI owner the right to a share of revenue from the production of oil and gas, typically free of the costs associated with drilling and operating the wells. In South Dakota, there may be different types of Assignments of Overriding Royalty Interest with Proportionate Reduction, depending on the specific terms and conditions agreed upon by the involved parties. Some key variations may include: 1. Limited Assignment of ORI with Proportionate Reduction: This type of assignment pertains to a partial transfer of the ORI rights, where a portion of the interest is assigned to another party while still maintaining the proportionate reduction provisions. 2. Absolute Assignment of ORI with Proportionate Reduction: This type of assignment involves a complete transfer of the ORI rights, where the assigning party relinquishes their entire interest to another party. Proportionate reduction provisions ensure that the assigned interest is proportionate to the total ORI held by other parties. 3. Temporary Assignment of ORI with Proportionate Reduction: This type of assignment is valid for a specific period or until certain conditions are met. It allows the assigned party to benefit from the ORI during the agreed-upon timeframe while abiding by the proportionate reduction provisions to maintain fairness among other parties. Regardless of the type, a South Dakota Assignment of Overriding Royalty Interest with Proportionate Reduction typically includes essential details such as the names and addresses of the assigning and assigned parties, the effective date of the assignment, a detailed description of the ORI's being transferred, and the proportionate reduction formula to be applied. In conclusion, the South Dakota Assignment of Overriding Royalty Interest with Proportionate Reduction is a critical document that governs the transfer of ORI's in oil and gas properties within the state. The various types of assignments allow parties to customize the terms of the transfer while ensuring fair distribution of royalties through proportionate reduction provisions.

The South Dakota Assignment of Overriding Royalty Interest with Proportionate Reduction is a legal agreement that pertains to the transfer of overriding royalty interests (ORI's) in oil and gas properties located within the state of South Dakota. This document outlines the process of assigning ORI's from one party to another, while also incorporating proportionate reduction provisions to ensure fair distribution of royalties among multiple parties. An overriding royalty interest is an interest in the production of oil and gas that is separate from the working interest held by the lessee or operator. It grants the ORI owner the right to a share of revenue from the production of oil and gas, typically free of the costs associated with drilling and operating the wells. In South Dakota, there may be different types of Assignments of Overriding Royalty Interest with Proportionate Reduction, depending on the specific terms and conditions agreed upon by the involved parties. Some key variations may include: 1. Limited Assignment of ORI with Proportionate Reduction: This type of assignment pertains to a partial transfer of the ORI rights, where a portion of the interest is assigned to another party while still maintaining the proportionate reduction provisions. 2. Absolute Assignment of ORI with Proportionate Reduction: This type of assignment involves a complete transfer of the ORI rights, where the assigning party relinquishes their entire interest to another party. Proportionate reduction provisions ensure that the assigned interest is proportionate to the total ORI held by other parties. 3. Temporary Assignment of ORI with Proportionate Reduction: This type of assignment is valid for a specific period or until certain conditions are met. It allows the assigned party to benefit from the ORI during the agreed-upon timeframe while abiding by the proportionate reduction provisions to maintain fairness among other parties. Regardless of the type, a South Dakota Assignment of Overriding Royalty Interest with Proportionate Reduction typically includes essential details such as the names and addresses of the assigning and assigned parties, the effective date of the assignment, a detailed description of the ORI's being transferred, and the proportionate reduction formula to be applied. In conclusion, the South Dakota Assignment of Overriding Royalty Interest with Proportionate Reduction is a critical document that governs the transfer of ORI's in oil and gas properties within the state. The various types of assignments allow parties to customize the terms of the transfer while ensuring fair distribution of royalties through proportionate reduction provisions.