This form is used when an Assignor assigns, transfers, and conveys to Assignee an overriding royalty interest in the Lease and all of the oil and gas produced, saved and marketed from the Lease, out of the interest owned by Assignor, with proportionate reduction (the Override ).
A Contra Costa California Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction refers to the transfer of a portion of the royalty interest attached to a single lease in Contra Costa County, California. This legal document allows for the assignment of a specific percentage or proportion of the royalty interest to another party or entity. The overriding royalty interest is a share of gross proceeds produced from the lease, typically defined as a percentage or fraction. It is separate from the ownership of the underlying minerals or the working interest in the lease. There may be different types of Contra Costa California Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction, which can be categorized based on the specific terms and conditions outlined in the agreement. Here are a few types that may exist: 1. Fixed Percentage Assignment: This type involves the transfer of a fixed percentage of the overriding royalty interest to another party. For example, Party A assigns 25% of its royalty interest to Party B, leaving Party A with 75% ownership. 2. Fractional Assignment: This type includes the transfer of a specific fractional interest in the overriding royalty interest. For instance, Party A assigns 1/8 (12.5%) of its royalty interest to Party B, while retaining the remaining 7/8 (87.5%). 3. Proportionate Reduction Based on Lease Revenue: In this type of assignment, the proportion of the overriding royalty interest assigned to the other party is determined by the lease's revenue or income. For example, if the lease revenue decreases due to a decline in production, the assigned royalty interest may be reduced proportionately to maintain fairness among the parties. 4. Time-Limited Assignments: This type involves an assignment of the overriding royalty interest for a specified duration or until certain conditions are met. After the assigned period, the interest may revert to the assigning party or undergo a new agreement. 5. Lump Sum Assignment: Instead of assigning a portion of the overriding royalty interest, this type involves the outright sale of the entire interest to another party. The assigning party will receive a fixed lump sum amount in exchange for transferring their complete interest. It is essential for all parties involved in a Contra Costa California Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction to carefully review and understand the terms, as it impacts the distribution of royalty proceeds and ownership rights associated with the lease. Legal counsel is often recommended ensuring compliance with state laws and protect the interests of each party involved.A Contra Costa California Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction refers to the transfer of a portion of the royalty interest attached to a single lease in Contra Costa County, California. This legal document allows for the assignment of a specific percentage or proportion of the royalty interest to another party or entity. The overriding royalty interest is a share of gross proceeds produced from the lease, typically defined as a percentage or fraction. It is separate from the ownership of the underlying minerals or the working interest in the lease. There may be different types of Contra Costa California Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction, which can be categorized based on the specific terms and conditions outlined in the agreement. Here are a few types that may exist: 1. Fixed Percentage Assignment: This type involves the transfer of a fixed percentage of the overriding royalty interest to another party. For example, Party A assigns 25% of its royalty interest to Party B, leaving Party A with 75% ownership. 2. Fractional Assignment: This type includes the transfer of a specific fractional interest in the overriding royalty interest. For instance, Party A assigns 1/8 (12.5%) of its royalty interest to Party B, while retaining the remaining 7/8 (87.5%). 3. Proportionate Reduction Based on Lease Revenue: In this type of assignment, the proportion of the overriding royalty interest assigned to the other party is determined by the lease's revenue or income. For example, if the lease revenue decreases due to a decline in production, the assigned royalty interest may be reduced proportionately to maintain fairness among the parties. 4. Time-Limited Assignments: This type involves an assignment of the overriding royalty interest for a specified duration or until certain conditions are met. After the assigned period, the interest may revert to the assigning party or undergo a new agreement. 5. Lump Sum Assignment: Instead of assigning a portion of the overriding royalty interest, this type involves the outright sale of the entire interest to another party. The assigning party will receive a fixed lump sum amount in exchange for transferring their complete interest. It is essential for all parties involved in a Contra Costa California Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction to carefully review and understand the terms, as it impacts the distribution of royalty proceeds and ownership rights associated with the lease. Legal counsel is often recommended ensuring compliance with state laws and protect the interests of each party involved.
