The form is used when the Assignor transfers, assigns, and conveys to Assignee an overriding royalty interest in the Leases and all of the oil, gas and other minerals produced, saved and marketed from the Lease equal to a pecentage of 8/8 (the Override ).
Wyoming Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction In Wyoming, the Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner refers to a legal document that allows an interest owner to transfer their overriding royalty interest (ORRIS) in an oil and gas lease to another party. This assignment can be made without any proportionate reduction in the ORRIS. An overriding royalty interest is a non-operating interest in a lease, which grants the interest owner a percentage of the revenue generated from the production of minerals, typically oil and gas. The ORRIS is separate from the working interest, which encompasses the right to extract minerals and bear the expenses of drilling and production. The Assignment of Overriding Royalty Interest is an important legal instrument that facilitates the transfer of ownership rights while preserving the existing ORRIS percentage. Unlike some other forms of assignments, this type does not involve a proportionate reduction in the ORRIS. Therefore, the assignee receives the exact overriding royalty interest percentage held by the assignor, often resulting in a highly valuable transaction. This type of assignment is frequently used in Wyoming due to the state's rich oil and gas resources. Wyoming is known for its vast natural reserves and is home to several prolific hydrocarbon formations, such as the Devonian-Mississippian Taken Shale, Library Formation, and the Green River Basin. These reserves attract a significant number of industry participants, including operators, leaseholders, and overriding royalty interest owners. Some variations of the Wyoming Assignment of Overriding Royalty Interest may include: 1. Wyoming Assignment of Overriding Royalty Interest in Cash Payment: This involves the transfer of overriding royalty interest in exchange for a cash sum or other financial consideration. The assignee compensates the assignor for the rights acquired. 2. Wyoming Assignment of Overriding Royalty Interest in Trade of Property: In this case, the overriding royalty interest is transferred through a trade of property or assets. The assignee may convey other properties or interests of value to the assignor as consideration for the overriding royalty interest. 3. Wyoming Assignment of Overriding Royalty Interest in Inheritance: When an overriding royalty interest owner passes away, their interest may be passed down through inheritance. The Assignment of Overriding Royalty Interest in Inheritance ensures a smooth transfer of ownership rights to the intended heirs, who become the new overriding royalty interest owners. It is crucial for all parties involved in a Wyoming Assignment of Overriding Royalty Interest to consult with legal professionals experienced in oil and gas law. The document should accurately reflect the terms of the assignment, including the ORRIS percentage, consideration, and any additional clauses necessary to protect the interests of both parties. Overall, the Wyoming Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction, is a legal mechanism that allows overriding royalty interest owners in Wyoming to transfer their interests without any reduction in their percentage. This type of assignment is widely used in the state's thriving oil and gas industry, playing a vital role in the transfer of ownership rights and fostering economic activity in the region.
