This form is used when, as a result of continuous production from the Lease and Lands, payout, as defined in an Assignment, has occurred, and Declarant is entitled to elect to convert the Override to a Working Interest, as provided for in the Assignment.
The Texas Declaration of Election to Convert Overriding Royalty Interest to Working Interest is a legal document that signifies the intent of an individual or entity to convert their overriding royalty interest (ORRIS) into a working interest in an oil and gas lease or property located in the state of Texas. This declaration is crucial for individuals or companies who wish to actively participate in the exploration, drilling, production, and development activities on the leased property. Keywords: Texas Declaration, Election to Convert, Overriding Royalty Interest, Working Interest, oil and gas lease, property, exploration, drilling, production, development activities. There are different types of Texas Declarations of Election to Convert Overriding Royalty Interest to Working Interest, depending on the specific circumstances and goals of the party involved. Below are some examples: 1. Individual's Declaration of Election to Convert Overriding Royalty Interest to Working Interest: This type of declaration is filed by an individual who currently holds an overriding royalty interest and decides to convert it into a working interest. This allows the individual to actively participate in all aspects of the lease or property development and gain a greater share of the profits generated. 2. Company's Declaration of Election to Convert Overriding Royalty Interest to Working Interest: This declaration is submitted by a business entity, such as an oil and gas company, that wishes to convert their overriding royalty interest into a working interest. By doing so, the company can take a more hands-on approach, contribute financially to the activities, and potentially benefit from higher financial returns. 3. Joint Declaration of Election to Convert Overriding Royalty Interest to Working Interest: In cases where multiple parties collectively own an overriding royalty interest, this joint declaration is employed. It denotes that all the involved parties unanimously agree to convert their ORRIS into a working interest, enabling them to participate jointly in operations, costs, and revenue sharing. 4. Partial Conversion Declaration of Election to Convert Overriding Royalty Interest to Working Interest: Sometimes, a party may choose to convert only a portion of their overriding royalty interest into a working interest. This allows them to strike a balance between retaining some passive income from the ORRIS while actively engaging in the decision-making processes and financial responsibilities associated with a working interest. Regardless of the type, a Texas Declaration of Election to Convert Overriding Royalty Interest to Working Interest must comply with the regulations and requirements set forth by the Texas Railroad Commission, the governing body responsible for overseeing oil and gas operations in the state. The declaration should accurately convey the intentions and choices of the party seeking the conversion to ensure a legally binding agreement.
The Texas Declaration of Election to Convert Overriding Royalty Interest to Working Interest is a legal document that signifies the intent of an individual or entity to convert their overriding royalty interest (ORRIS) into a working interest in an oil and gas lease or property located in the state of Texas. This declaration is crucial for individuals or companies who wish to actively participate in the exploration, drilling, production, and development activities on the leased property. Keywords: Texas Declaration, Election to Convert, Overriding Royalty Interest, Working Interest, oil and gas lease, property, exploration, drilling, production, development activities. There are different types of Texas Declarations of Election to Convert Overriding Royalty Interest to Working Interest, depending on the specific circumstances and goals of the party involved. Below are some examples: 1. Individual's Declaration of Election to Convert Overriding Royalty Interest to Working Interest: This type of declaration is filed by an individual who currently holds an overriding royalty interest and decides to convert it into a working interest. This allows the individual to actively participate in all aspects of the lease or property development and gain a greater share of the profits generated. 2. Company's Declaration of Election to Convert Overriding Royalty Interest to Working Interest: This declaration is submitted by a business entity, such as an oil and gas company, that wishes to convert their overriding royalty interest into a working interest. By doing so, the company can take a more hands-on approach, contribute financially to the activities, and potentially benefit from higher financial returns. 3. Joint Declaration of Election to Convert Overriding Royalty Interest to Working Interest: In cases where multiple parties collectively own an overriding royalty interest, this joint declaration is employed. It denotes that all the involved parties unanimously agree to convert their ORRIS into a working interest, enabling them to participate jointly in operations, costs, and revenue sharing. 4. Partial Conversion Declaration of Election to Convert Overriding Royalty Interest to Working Interest: Sometimes, a party may choose to convert only a portion of their overriding royalty interest into a working interest. This allows them to strike a balance between retaining some passive income from the ORRIS while actively engaging in the decision-making processes and financial responsibilities associated with a working interest. Regardless of the type, a Texas Declaration of Election to Convert Overriding Royalty Interest to Working Interest must comply with the regulations and requirements set forth by the Texas Railroad Commission, the governing body responsible for overseeing oil and gas operations in the state. The declaration should accurately convey the intentions and choices of the party seeking the conversion to ensure a legally binding agreement.
