This form is used when the Assignor wishes to convey, assign and sell to the Assignee an undivided working interest in an oil and gas lease but reserves an overriding royalty interest payable on all oil, gas, and associated hydrocarbons produced, saved and sold from the Lands.
Texas Partial Assignment of Oil and Gas Lease for Part of Lands Subject to Nonproducing Lease is a legal document that allows the transfer of a portion of the rights and interests of an existing oil and gas lease to a third party. The purpose of this assignment is to give the assignee the right to explore, produce, and develop oil and gas resources on the assigned portion of the leased land. In Texas, there are several types of Partial Assignment of Oil and Gas Lease for Part of Lands Subject to Nonproducing Lease, including: 1. Surface Lands Assignment: This type of assignment involves the transfer of the surface rights of the leased land without transferring the mineral rights. It allows the assignee to use and develop the surface for oil and gas operations while leaving the mineral rights with the original lessee. 2. Mineral Interest Assignment: This assignment transfers a portion of the mineral rights to the assignee, allowing them to explore and develop oil and gas resources on the assigned portion of the land. The original lessee retains the remaining mineral rights and continues to hold the nonproducing lease. 3. Production Rights Assignment: This type of assignment grants the assignee the right to the production and profits from the assigned portion of the leased land. The assignee becomes responsible for the costs and obligations associated with the assigned portion, including drilling, production, and royalty payments. The Texas Partial Assignment of Oil and Gas Lease for Part of Lands Subject to Nonproducing Lease typically includes key provisions such as: 1. Assignor and Assignee Information: The names and contact details of the assignor (original lessee) and assignee (new party acquiring the rights) are clearly stated. 2. Description of Assigned Lands: The lease document provides a detailed description of the portion of the land to be assigned, including legal descriptions, boundaries, and any specific restrictions or conditions. 3. Consideration and Terms: The document outlines the consideration (payment or other valuable consideration) exchanged between the assignor and assignee. It also specifies the terms and conditions of the assignment, including any obligations or liabilities. 4. Governing Law: The lease is governed by the laws of the state of Texas, ensuring compliance with state regulations and requirements for oil and gas operations. 5. Reservation of Rights: The assignor may reserve certain rights or interests in the assigned lands, such as rights to certain minerals or specific uses of the land. 6. Indemnification: The assignee may be required to indemnify and hold harmless the assignor from any claims, damages, or liabilities arising out of the assigned portion of the land. Overall, the Texas Partial Assignment of Oil and Gas Lease for Part of Lands Subject to Nonproducing Lease allows for the transfer of specific rights and interests in a nonproducing lease, enabling assignees to explore and develop oil and gas resources while respecting the original lessee's remaining rights.
