Utah Assignment of Overriding Royalty Interest to Become Effective At Payout, With Payout Based on Volume of Oil Produced

• Category: Oil Gas and Minerals - Assignments
• State: Multi-State
• Control #: US-OG-283
• Format: Word; Rich Text

Description

This form is used by the Assignor to transfer, assign, and convey to Assignee an overriding royalty interest in a Lease, to be effective at payout. A Utah Assignment of Overriding Royalty Interest to Become Effective At Payout, With Payout Based on Volume of Oil Produced is a legal document that assigns a portion of the royalty interest in an oil-producing property in Utah to a party, which only becomes effective when certain conditions are met, specifically when the revenue generated from the oil production reaches a certain level or "payout" amount. The amount of payout is determined based on the volume of oil produced. This type of assignment is commonly used in oil and gas industry agreements to ensure that the assignee receives a share of the royalties once the project starts generating significant revenue. It provides an incentive for the assignee to invest in the production and development of the oil property, as their payout is directly tied to the volume of oil produced. The Utah Assignment of Overriding Royalty Interest to Become Effective At Payout can have different variations or types, depending on the specific terms and conditions agreed upon by the parties involved. Some possible variations may include: 1. Fixed Volume Assignment: In this type of assignment, the payout is based on a fixed volume of oil produced, regardless of the total revenue generated. For example, the assignee may be entitled to a certain percentage of the royalty once a specific volume of oil, such as 1,000 barrels, is produced. 2. Revenue-Based Assignment: In this type, the payout is calculated based on a certain percentage of the revenue generated from the oil production. For instance, the assignee may receive 10% of the total revenue once the payout amount is reached. 3. Tiered Assignment: This type of assignment involves different payout percentages based on different production levels. The assignee may receive a higher percentage of the royalty if the oil production exceeds certain thresholds. For example, they may receive 5% of the revenue for the first 1,000 barrels produced, but their percentage increases to 10% for any barrels produced above that limit. 4. Time-Limited Assignment: This type of assignment might have a time constraint associated with the payout condition. For instance, the assignee may only become eligible for the royalty interest after a specific period, such as two years, even if the payout amount is not reached. These variations reflect the flexibility of the Utah Assignment of Overriding Royalty Interest to Become Effective At Payout, With Payout Based on Volume of Oil Produced, allowing parties to customize the terms based on their specific needs and objectives.

A Utah Assignment of Overriding Royalty Interest to Become Effective At Payout, With Payout Based on Volume of Oil Produced is a legal document that assigns a portion of the royalty interest in an oil-producing property in Utah to a party, which only becomes effective when certain conditions are met, specifically when the revenue generated from the oil production reaches a certain level or "payout" amount. The amount of payout is determined based on the volume of oil produced. This type of assignment is commonly used in oil and gas industry agreements to ensure that the assignee receives a share of the royalties once the project starts generating significant revenue. It provides an incentive for the assignee to invest in the production and development of the oil property, as their payout is directly tied to the volume of oil produced. The Utah Assignment of Overriding Royalty Interest to Become Effective At Payout can have different variations or types, depending on the specific terms and conditions agreed upon by the parties involved. Some possible variations may include: 1. Fixed Volume Assignment: In this type of assignment, the payout is based on a fixed volume of oil produced, regardless of the total revenue generated. For example, the assignee may be entitled to a certain percentage of the royalty once a specific volume of oil, such as 1,000 barrels, is produced. 2. Revenue-Based Assignment: In this type, the payout is calculated based on a certain percentage of the revenue generated from the oil production. For instance, the assignee may receive 10% of the total revenue once the payout amount is reached. 3. Tiered Assignment: This type of assignment involves different payout percentages based on different production levels. The assignee may receive a higher percentage of the royalty if the oil production exceeds certain thresholds. For example, they may receive 5% of the revenue for the first 1,000 barrels produced, but their percentage increases to 10% for any barrels produced above that limit. 4. Time-Limited Assignment: This type of assignment might have a time constraint associated with the payout condition. For instance, the assignee may only become eligible for the royalty interest after a specific period, such as two years, even if the payout amount is not reached. These variations reflect the flexibility of the Utah Assignment of Overriding Royalty Interest to Become Effective At Payout, With Payout Based on Volume of Oil Produced, allowing parties to customize the terms based on their specific needs and objectives.