Tennessee Assignment of Overriding Royalty Interest with Multiple Leases that are Non Producing with Reservation of the Right to Pool

• Category: Oil Gas and Minerals - Assignments
• State: Multi-State
• Control #: US-OG-691
• Format: Word; Rich Text

Description

This form is used by the Assignor to transfer, assign, and convey to Assignee an overriding royalty interest in multiple non-producing Leases. A Tennessee Assignment of Overriding Royalty Interest with Multiple Leases that are Non Producing with Reservation of the Right to Pool refers to a legal document that transfers the rights to receive royalty payments from multiple leases in Tennessee to a third party, despite the leases not currently being in production. It also includes a provision that reserves the right to combine or "pool" the leased tracts for future production purposes. This type of assignment can be made in various scenarios, such as: 1. Non-Producing Leases: This assignment may be applicable when leases in Tennessee are not currently in production, meaning no oil, gas, or mineral extraction is taking place. Despite the leases not generating immediate income, there may still be an interest in transferring the associated royalties to another party. 2. Assignment of Overriding Royalty Interest: The assignment covers the overriding royalty interest, which is a specific portion of the total royalty interest reserved by the lessor (the landowner) when leasing their property for oil, gas, or mineral exploration. The overriding royalty interest is usually a percentage of the gross production proceeds, separate from the regular royalty payments. 3. Multiple Leases: The assignment encompasses multiple leases held by the assignor (the original owner of the overriding royalty interest). These leases might cover different tracts of land in Tennessee, potentially situated in different locations or owned by different individuals or entities. 4. Reservation of the Right to Pool: This clause ensures that the assignor retains the right to combine, or pool, the leased tracts for future production activities. Pooling allows for the consolidation of smaller tracts into larger units, which can enhance production efficiency and reduce costs. It is important to consult with legal professionals experienced in oil, gas, and mineral rights in Tennessee when drafting or reviewing such assignments to ensure compliance with state laws and regulations. The specifics of the assignment, including the parties involved, royalty interests, lease details, and any additional terms, should be clearly outlined in the document.

A Tennessee Assignment of Overriding Royalty Interest with Multiple Leases that are Non Producing with Reservation of the Right to Pool refers to a legal document that transfers the rights to receive royalty payments from multiple leases in Tennessee to a third party, despite the leases not currently being in production. It also includes a provision that reserves the right to combine or "pool" the leased tracts for future production purposes. This type of assignment can be made in various scenarios, such as: 1. Non-Producing Leases: This assignment may be applicable when leases in Tennessee are not currently in production, meaning no oil, gas, or mineral extraction is taking place. Despite the leases not generating immediate income, there may still be an interest in transferring the associated royalties to another party. 2. Assignment of Overriding Royalty Interest: The assignment covers the overriding royalty interest, which is a specific portion of the total royalty interest reserved by the lessor (the landowner) when leasing their property for oil, gas, or mineral exploration. The overriding royalty interest is usually a percentage of the gross production proceeds, separate from the regular royalty payments. 3. Multiple Leases: The assignment encompasses multiple leases held by the assignor (the original owner of the overriding royalty interest). These leases might cover different tracts of land in Tennessee, potentially situated in different locations or owned by different individuals or entities. 4. Reservation of the Right to Pool: This clause ensures that the assignor retains the right to combine, or pool, the leased tracts for future production activities. Pooling allows for the consolidation of smaller tracts into larger units, which can enhance production efficiency and reduce costs. It is important to consult with legal professionals experienced in oil, gas, and mineral rights in Tennessee when drafting or reviewing such assignments to ensure compliance with state laws and regulations. The specifics of the assignment, including the parties involved, royalty interests, lease details, and any additional terms, should be clearly outlined in the document.