This form is used when Assignor transfers, assigns and conveys to Assignee an overriding royalty interest in all of the oil, gas, and other minerals produced, saved, and marketed from all of the Lands and Leases equal to a determined amount (the Override ).
Texas Assignment of Overriding Royalty Interest in Multiple Assignors is a legal document that grants the transfer and assignment of overriding royalty interests (ORRIS) in oil and gas leases or properties located in the state of Texas. Multiple assignors refer to two or more individuals or entities collectively transferring their interests to another party. ORRIS is a non-operating interest in an oil and gas lease, entitling the ORRIS owner to a percentage of the gross revenue from production, typically free from production costs. An Assignment of ORRIS allows assignors to convey their rights to a third party, who then assumes the responsibilities and benefits associated with the ORRIS. This type of assignment is commonly used when multiple assignors want to consolidate their interests into a single assignee or when they wish to transfer their interests collectively to a third party for various reasons such as raising capital, estate planning, or simplifying ownership structure. Different types of Texas Assignment of Overriding Royalty Interest in Multiple Assignors may include: 1. Absolute Assignment: This type of assignment involves a complete and irrevocable transfer of ORRIS from multiple assignors to the assignee. The assignee becomes the sole owner of the assigned interests, assuming all rights, benefits, and obligations associated with the ORRIS. 2. Partial Assignment: In this case, assignors transfer a portion or percentage of their ORRIS to the assignee while retaining the remaining interest themselves. The assignee then becomes a co-owner in the ORRIS and shares in the revenue accordingly. 3. Proportional Assignment: This assignment type allows multiple assignors to transfer their ORRIS interests based on a predetermined proportional split. For instance, if three assignors collectively hold 60% ORRIS in a property, they may assign 20% each to an assignee, ensuring an equal distribution of interests. 4. Joint Assignment: This type of assignment involves multiple assignors assigning their ORRIS interests collectively but retaining joint ownership in the assigned interest. Each assignor continues to receive a proportionate share of the revenue and retains the ability to act jointly on matters related to the interest. When executing a Texas Assignment of Overriding Royalty Interest in Multiple Assignors, it is crucial to consult with an attorney experienced in oil and gas law to ensure compliance with relevant regulations and to accurately document the parties' intentions and responsibilities.
