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 ).
San Diego California Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction, Explained In the realm of oil and gas ownership and financial agreements, an Assignment of Overriding Royalty Interest (ORRIS) is a crucial concept. Specifically, in San Diego, California, this assignment type is known for its distinct characteristic of "No Proportionate Reduction." Let's delve into a detailed description of this transaction and explore its various types. An Assignment of Overriding Royalty Interest is an agreement where the owner of an ORRIS, often an individual or company, transfers their right to receive a percentage of revenue from oil and gas production to another entity, known as the assignee. The ORRIS owner is typically entitled to an interest in the proceeds from oil and gas production, regardless of the working and operating interests held by leaseholders and operators. Now, in the context of San Diego, California, an Assignment of Overriding Royalty Interest with "No Proportionate Reduction" implies that the assignee will not face any reduction in their ORRIS percentage, even if the overall working or operating interest changes. Types of San Diego California Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner 1. Fixed Percentage Assignment: This assignment involves the ORRIS owner, also called the granter, transferring a fixed percentage of their royalty interest to the assignee. For example, the granter may assign a 3% ORRIS to the assignee, entitling them to 3% of the revenue generated from oil and gas production in a specific area in San Diego, California. 2. Area-Specific Assignment: In this type, the assignment is limited to a specific geographical area in San Diego, California. Instead of covering the entire region, the assignee may receive the overriding royalty interest only for a particular oil or gas leasehold or lease area within San Diego. 3. Time-Limited Assignment: Occurring for a set period, this assignment grants the assignee an ORRIS interest for a predefined duration. For instance, the assignee may hold the overriding royalty interest for five years, after which the rights revert to the ORRIS owner. It is essential to note that these types can be combined or customized to suit the specific needs and preferences of both the granter and assignee involved in the San Diego California Assignment of Overriding Royalty Interest transaction. In conclusion, a San Diego California Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction, refers to the transfer of an ORRIS by the owner to an assignee, without any reduction in the assignee's ORRIS percentage, irrespective of changes in working or operating interests. This assignment can take various forms, such as fixed percentage, area-specific, or time-limited assignments, allowing flexibility in meeting the requirements of both parties involved in the agreement.San Diego California Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction, Explained In the realm of oil and gas ownership and financial agreements, an Assignment of Overriding Royalty Interest (ORRIS) is a crucial concept. Specifically, in San Diego, California, this assignment type is known for its distinct characteristic of "No Proportionate Reduction." Let's delve into a detailed description of this transaction and explore its various types. An Assignment of Overriding Royalty Interest is an agreement where the owner of an ORRIS, often an individual or company, transfers their right to receive a percentage of revenue from oil and gas production to another entity, known as the assignee. The ORRIS owner is typically entitled to an interest in the proceeds from oil and gas production, regardless of the working and operating interests held by leaseholders and operators. Now, in the context of San Diego, California, an Assignment of Overriding Royalty Interest with "No Proportionate Reduction" implies that the assignee will not face any reduction in their ORRIS percentage, even if the overall working or operating interest changes. Types of San Diego California Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner 1. Fixed Percentage Assignment: This assignment involves the ORRIS owner, also called the granter, transferring a fixed percentage of their royalty interest to the assignee. For example, the granter may assign a 3% ORRIS to the assignee, entitling them to 3% of the revenue generated from oil and gas production in a specific area in San Diego, California. 2. Area-Specific Assignment: In this type, the assignment is limited to a specific geographical area in San Diego, California. Instead of covering the entire region, the assignee may receive the overriding royalty interest only for a particular oil or gas leasehold or lease area within San Diego. 3. Time-Limited Assignment: Occurring for a set period, this assignment grants the assignee an ORRIS interest for a predefined duration. For instance, the assignee may hold the overriding royalty interest for five years, after which the rights revert to the ORRIS owner. It is essential to note that these types can be combined or customized to suit the specific needs and preferences of both the granter and assignee involved in the San Diego California Assignment of Overriding Royalty Interest transaction. In conclusion, a San Diego California Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction, refers to the transfer of an ORRIS by the owner to an assignee, without any reduction in the assignee's ORRIS percentage, irrespective of changes in working or operating interests. This assignment can take various forms, such as fixed percentage, area-specific, or time-limited assignments, allowing flexibility in meeting the requirements of both parties involved in the agreement.
