How do you calculate royalty interest?

Net revenue is the amount that is shared among the property owners. To determine net revenue interest, multiply the royalty interest by the owner's shared interest. For example, if you have a 5/16 royalty, your net royalty interest would be 25% multiplied by 5/16, which equals 7.8125% calculated to four decimal places.

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Assignment of Overriding Royalty Interest with Proportionate...

Assignment of Overriding Royalty Interest with Proportionate Reduction

Name: Assignment of Overriding Royalty Interest with Proportionate Reduction
Brand: US Legal Forms
Price: 59.00 USD
Rating: 4.81 (447 reviews)

Category:

Oil Gas and Minerals - Assignments

State:

Multi-State

Control #:

US-OG-282

Format:

Instant download

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.

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How to fill out Assignment Of Overriding Royalty Interest With Proportionate Reduction?

1. The Assignment of Overriding Royalty Interest with Proportionate Reduction form requires the following information to complete:
- The names and addresses of the assignor (the party assigning the interest) and assignee (the party receiving the interest)
- The effective date of the assignment
- Description of the property or lease for which the overriding royalty interest is being assigned
- The percentage of the overriding royalty interest being assigned
- Any additional terms or conditions of the assignment

2. It is possible to fill out the Assignment of Overriding Royalty Interest with Proportionate Reduction form online. Users can find up-to-date, lawyer-approved, state-specific form templates on US Legal Forms website.

3. To access the form, users need to register and purchase a Basic or Premium subscription on a monthly or annual basis on the US Legal Forms website. The forms are available in Word, PDF, and RTF formats, making it easy for users to complete or download them as needed.

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FAQ

An overriding royalty interest is the right to receive revenue from the production of oil and gas from a well. The overriding royalty is carved out of the lessee's (operator's) working interest and entitles its owner to a fraction of production.

Net revenue is the amount that is shared among the property owners. To determine net revenue interest, multiply the royalty interest by the owner's shared interest. For example, if you have a 5/16 royalty, your net royalty interest would be 25% multiplied by 5/16, which equals 7.8125% calculated to four decimal places.

An overriding royalty interest generally entitles the owner of the interest to a specified share of the oil and gas produced under the terms of the lease. In Texas and in many other oil-producing states, overriding royalty interests are generally treated as interests in real estate.

The value of an overriding royalty interest is simple to calculate since it is a percent of the working interest lease. The ORRI value is based on production on the acreage leased by the working interest.

Overriding Royalty Interest (ORRI) a percentage share of production, or the value derived from production, which is free of all costs of drilling and producing, and is created by the lessee or working interest owner and paid by the lessee or working interest owner.

A gross overriding royalty can be created on a mine which produces a product like petroleum in that it can be sold without alteration of its basic character.The costs of smelting and refining the gold will reduce the proceeds to the mine owner, a percentage of which will be paid as royalty.

Assignment of Overriding Royalty Interest with Proportionate Reduction

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