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 ).
A Houston Texas Assignment of Overriding Royalty Interest in an Overriding Royalty Interest Owner, No Proportionate Reduction, is a legal document that involves the transfer of rights and interests in oil and gas production from one party to another. This type of assignment is commonly used in the energy industry in Houston to facilitate the exploration and development of oil and gas reserves. The overriding royalty interest (ORRIS) is an interest in the proceeds generated from the production of oil and gas reserves. It is a non-operating interest that entitles the owner to receive a share of the production revenue, usually expressed as a percentage, without incurring any costs or risks associated with the drilling and operation of the wells. In a Houston Texas Assignment of Overriding Royalty Interest, the ORRIS owner transfers their interest to another party, who becomes the new owner of the ORRIS. This transfer typically occurs through a legally binding agreement called an assignment. One key feature of this type of assignment is the "No Proportionate Reduction" clause. This clause ensures that the assignment does not result in a reduction in the ORRIS owner's share of the production revenue. It safeguards the ORRIS owner's entitlement to a fixed percentage of the production, regardless of any subsequent changes in the overall ownership structure or additional interests acquired by the operator. There are various types of Houston Texas Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction, depending on the specific circumstances and parties involved. Some common variations include: 1. Full Assignment: In a full assignment, the ORRIS owner transfers their entire interest in the ORRIS to the acquiring party. The acquiring party becomes the sole owner of the ORRIS and assumes all rights and responsibilities associated with it. 2. Partial Assignment: A partial assignment involves the transfer of only a portion of the ORRIS owner's interest to the acquiring party. This allows the ORRIS owner to maintain partial ownership and still participate in the revenue generated from the production. 3. Absolute Assignment: An absolute assignment is a form of assignment that transfers the ORRIS owner's interest without any retaining rights or interests. The acquiring party becomes the absolute owner of the ORRIS, and the ORRIS owner relinquishes all future entitlement to revenue. 4. Non-Exclusive Assignment: A non-exclusive assignment allows the ORRIS owner to assign their interest to multiple parties simultaneously. It gives the ORRIS owner the flexibility to assign different percentages of their interest to multiple parties, thereby diversifying their investment. In conclusion, a Houston Texas Assignment of Overriding Royalty Interest in an Overriding Royalty Interest Owner, No Proportionate Reduction, is a vital legal document used in the energy industry to transfer ownership of Orris. The "No Proportionate Reduction" clause ensures the ORRIS owner's share of the production revenue remains intact. Different types of assignments exist, including full, partial, absolute, and non-exclusive assignments, enabling ORRIS owners to tailor their ownership structure according to their needs and investment objectives.A Houston Texas Assignment of Overriding Royalty Interest in an Overriding Royalty Interest Owner, No Proportionate Reduction, is a legal document that involves the transfer of rights and interests in oil and gas production from one party to another. This type of assignment is commonly used in the energy industry in Houston to facilitate the exploration and development of oil and gas reserves. The overriding royalty interest (ORRIS) is an interest in the proceeds generated from the production of oil and gas reserves. It is a non-operating interest that entitles the owner to receive a share of the production revenue, usually expressed as a percentage, without incurring any costs or risks associated with the drilling and operation of the wells. In a Houston Texas Assignment of Overriding Royalty Interest, the ORRIS owner transfers their interest to another party, who becomes the new owner of the ORRIS. This transfer typically occurs through a legally binding agreement called an assignment. One key feature of this type of assignment is the "No Proportionate Reduction" clause. This clause ensures that the assignment does not result in a reduction in the ORRIS owner's share of the production revenue. It safeguards the ORRIS owner's entitlement to a fixed percentage of the production, regardless of any subsequent changes in the overall ownership structure or additional interests acquired by the operator. There are various types of Houston Texas Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction, depending on the specific circumstances and parties involved. Some common variations include: 1. Full Assignment: In a full assignment, the ORRIS owner transfers their entire interest in the ORRIS to the acquiring party. The acquiring party becomes the sole owner of the ORRIS and assumes all rights and responsibilities associated with it. 2. Partial Assignment: A partial assignment involves the transfer of only a portion of the ORRIS owner's interest to the acquiring party. This allows the ORRIS owner to maintain partial ownership and still participate in the revenue generated from the production. 3. Absolute Assignment: An absolute assignment is a form of assignment that transfers the ORRIS owner's interest without any retaining rights or interests. The acquiring party becomes the absolute owner of the ORRIS, and the ORRIS owner relinquishes all future entitlement to revenue. 4. Non-Exclusive Assignment: A non-exclusive assignment allows the ORRIS owner to assign their interest to multiple parties simultaneously. It gives the ORRIS owner the flexibility to assign different percentages of their interest to multiple parties, thereby diversifying their investment. In conclusion, a Houston Texas Assignment of Overriding Royalty Interest in an Overriding Royalty Interest Owner, No Proportionate Reduction, is a vital legal document used in the energy industry to transfer ownership of Orris. The "No Proportionate Reduction" clause ensures the ORRIS owner's share of the production revenue remains intact. Different types of assignments exist, including full, partial, absolute, and non-exclusive assignments, enabling ORRIS owners to tailor their ownership structure according to their needs and investment objectives.
