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 ).
Lima, Arizona is a town located in Pima County, Arizona, USA. It is known for its rich history, picturesque landscapes, and a strong presence in the oil and gas industry. In this article, we will delve into the topic of "Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction" specific to Lima, Arizona. An "Assignment of Overriding Royalty Interest" in Lima, Arizona refers to the transfer of ownership of a portion of the royalties derived from the production of oil and gas within a specific area. In this case, the overriding royalty interest owner is the party who owns this interest and has the right to transfer it to another party through an assignment agreement. The aim of the assignment is to enable the overriding royalty interest owner to sell, assign, or transfer their interest to another party, usually in exchange for a monetary consideration. This transaction typically involves the drafting of a legally binding contract that defines the scope and terms of the transfer. It is worth noting that in the context of Lima, Arizona, the assignment of overriding royalty interest does not involve any proportionate reduction. This means that the portion of the royalties being transferred does not impact the overall distribution of royalties among other working interest owners. Instead, the transfer only affects the specific overriding royalty interest. Potential types of Lima, Arizona Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction include: 1. Individual Assignment: This type of assignment involves an overriding royalty interest owner transferring their interest to an individual or entity, typically for financial or strategic reasons. The individual or entity acquiring the interest will then benefit from receiving a portion of the oil and gas royalties generated within the designated area. 2. Corporate Assignment: In this scenario, an overriding royalty interest owner, who may be a corporation or another business entity, transfers their interest to another corporation or business entity. This type of assignment can occur as part of business acquisitions, mergers, or reorganizations. 3. Investment Assignment: Sometimes, overriding royalty interest owners see potential in selling their interest to investors who are seeking opportunities in the oil and gas industry. This type of assignment allows investors to acquire a stake in the future royalties generated by oil and gas production without having direct involvement in operations. 4. Inheritance Assignment: In situations where an overriding royalty interest owner passes away, their interest may be transferred to heirs or beneficiaries through an inheritance assignment. This ensures that the royalties continue to benefit the designated individuals or entities, following the wishes of the deceased owner. In conclusion, the "Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction" in Lima, Arizona involves the transfer of royalty rights for oil and gas production. There can be various types of assignments, including individual, corporate, investment, and inheritance assignments. These assignments allow for the transfer of ownership without affecting the overall distribution of royalties among other working interest owners in Lima, Arizona.
