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 ).
Travis County, Texas, is a region known for its rich oil and gas reserves, attracting numerous investors and mineral rights owners. One common aspect of these investments is the Assignment of Overriding Royalty Interest (ORRIS) by the Overriding Royalty Interest (ORI) owner. An Assignment of ORRIS refers to the transfer of the right to receive a percentage of the revenue generated from oil and gas production to another party. The ORRIS owner, who typically holds a share of the working interest, grants a portion of their interest to a third party in exchange for a compensation or a lump sum payment. This assignment allows the third party (assignee) to receive a specified percentage of the royalty payment while the ORRIS owner continues to retain the remaining portion. In Travis County, Texas, Assignments of ORRIS by the ORI owner include a crucial clause known as "No Proportionate Reduction". This clause ensures that the assignee's ORRIS interest is not subject to the proportionate reduction that might occur due to any decrease in the working interest owner's share. In other words, even if the working interest owner's percentage is reduced, the assignee's ORRIS share remains constant. Different types of Travis County, Texas, Assignment of ORRIS by the ORI owner, with "No Proportionate Reduction," can be categorized based on the specific parties involved, the payment structure, or other contract terms. Some common types include: 1. Individual Assignment of ORRIS: In this type, an individual ORI owner assigns a specific percentage of their ORRIS interest to another party without involving any joint ownership entities or corporations. 2. Corporate Assignment of ORRIS: This type involves the assignment of ORRIS by a corporate ORI owner, such as an oil and gas company, to a third party or another corporation. The assignment may be carried out for various reasons, including diversifying the company's investment portfolio or raising additional capital. 3. Partial Assignment of ORRIS: A partial assignment refers to the transfer of a specific portion or percentage of the ORRIS interest in the ORI owner. The assignee then receives the corresponding percentage of the royalty payments based on the assigned interest. 4. Lump Sum Assignment of ORRIS: In some instances, the ORI owner may choose to assign their ORRIS interest in exchange for a one-time payment or a lump sum. This type of assignment provides the ORI owner with immediate financial benefits while transferring the rights and benefits of the ORRIS to the assignee. 5. Compensatory Assignment of ORRIS: This type of assignment involves the assignee compensating the ORI owner with a predetermined amount or other considerations in exchange for the ORRIS interest. The compensation terms and structure can vary and may include cash, shares in the assignee's company, or future profit-sharing arrangements. It is important for both the ORRIS owner and the assignee to carefully review and negotiate the assignment documentation to ensure that their respective rights, obligations, and interests are properly safeguarded. Consulting with a knowledgeable attorney or industry expert in Travis County, Texas, can offer valuable guidance in navigating the complexities of Assignment of ORRIS by the ORI owner, No Proportionate Reduction.Travis County, Texas, is a region known for its rich oil and gas reserves, attracting numerous investors and mineral rights owners. One common aspect of these investments is the Assignment of Overriding Royalty Interest (ORRIS) by the Overriding Royalty Interest (ORI) owner. An Assignment of ORRIS refers to the transfer of the right to receive a percentage of the revenue generated from oil and gas production to another party. The ORRIS owner, who typically holds a share of the working interest, grants a portion of their interest to a third party in exchange for a compensation or a lump sum payment. This assignment allows the third party (assignee) to receive a specified percentage of the royalty payment while the ORRIS owner continues to retain the remaining portion. In Travis County, Texas, Assignments of ORRIS by the ORI owner include a crucial clause known as "No Proportionate Reduction". This clause ensures that the assignee's ORRIS interest is not subject to the proportionate reduction that might occur due to any decrease in the working interest owner's share. In other words, even if the working interest owner's percentage is reduced, the assignee's ORRIS share remains constant. Different types of Travis County, Texas, Assignment of ORRIS by the ORI owner, with "No Proportionate Reduction," can be categorized based on the specific parties involved, the payment structure, or other contract terms. Some common types include: 1. Individual Assignment of ORRIS: In this type, an individual ORI owner assigns a specific percentage of their ORRIS interest to another party without involving any joint ownership entities or corporations. 2. Corporate Assignment of ORRIS: This type involves the assignment of ORRIS by a corporate ORI owner, such as an oil and gas company, to a third party or another corporation. The assignment may be carried out for various reasons, including diversifying the company's investment portfolio or raising additional capital. 3. Partial Assignment of ORRIS: A partial assignment refers to the transfer of a specific portion or percentage of the ORRIS interest in the ORI owner. The assignee then receives the corresponding percentage of the royalty payments based on the assigned interest. 4. Lump Sum Assignment of ORRIS: In some instances, the ORI owner may choose to assign their ORRIS interest in exchange for a one-time payment or a lump sum. This type of assignment provides the ORI owner with immediate financial benefits while transferring the rights and benefits of the ORRIS to the assignee. 5. Compensatory Assignment of ORRIS: This type of assignment involves the assignee compensating the ORI owner with a predetermined amount or other considerations in exchange for the ORRIS interest. The compensation terms and structure can vary and may include cash, shares in the assignee's company, or future profit-sharing arrangements. It is important for both the ORRIS owner and the assignee to carefully review and negotiate the assignment documentation to ensure that their respective rights, obligations, and interests are properly safeguarded. Consulting with a knowledgeable attorney or industry expert in Travis County, Texas, can offer valuable guidance in navigating the complexities of Assignment of ORRIS by the ORI owner, No Proportionate Reduction.
