Harris Texas Assignment of Overriding Royalty Interest with Proportionate Reduction is a legal document that pertains to the transfer of an interest in oil, gas, or mineral rights in the Harris County region of Texas. This assignment allows for the transfer of the overriding royalty interest (ORRIS) to a third party, who will then receive a proportionate reduction in the interest. The concept of an overriding royalty interest refers to a share of the proceeds from production activities on a specific lease or well. This interest is separate from the mineral interest or working interest and is usually a percentage of the gross production, free of expenses. By assigning this interest, the current ORRIS owner transfers their right to receive a portion of the proceeds to another party. The Harris Texas Assignment of Overriding Royalty Interest with Proportionate Reduction may vary depending on the specific terms negotiated between the parties involved. Some common types or variations of this assignment include: 1. Non-participating ORRIS assignment: This type of assignment allows the assignee to receive their share of the overriding royalty interest without having any liability for associated expenses or obligations related to the lease or well. 2. Proportionate reduction assignment: This variation of the assignment addresses situations where the assignment results in a proportionate reduction of the interest rather than a complete transfer. For example, if the current ORRIS owner transfers a 5% interest and their remaining interest is reduced by 2%, resulting in a 3% retained interest. 3. Assignment with consent provision: This type of assignment may require the consent of the operator or working interest owner before it can be fully executed. The assignment document would include provisions outlining the conditions under which consent is required and the obligations of the parties involved in obtaining such consent. In summary, the Harris Texas Assignment of Overriding Royalty Interest with Proportionate Reduction is a legally binding document that allows for the transfer of an ORRIS in Harris County, Texas. The specific terms and variations of this assignment can be tailored to meet the needs and negotiations of the parties involved.
Harris Texas Assignment of Overriding Royalty Interest with Proportionate Reduction is a legal document that pertains to the transfer of an interest in oil, gas, or mineral rights in the Harris County region of Texas. This assignment allows for the transfer of the overriding royalty interest (ORRIS) to a third party, who will then receive a proportionate reduction in the interest. The concept of an overriding royalty interest refers to a share of the proceeds from production activities on a specific lease or well. This interest is separate from the mineral interest or working interest and is usually a percentage of the gross production, free of expenses. By assigning this interest, the current ORRIS owner transfers their right to receive a portion of the proceeds to another party. The Harris Texas Assignment of Overriding Royalty Interest with Proportionate Reduction may vary depending on the specific terms negotiated between the parties involved. Some common types or variations of this assignment include: 1. Non-participating ORRIS assignment: This type of assignment allows the assignee to receive their share of the overriding royalty interest without having any liability for associated expenses or obligations related to the lease or well. 2. Proportionate reduction assignment: This variation of the assignment addresses situations where the assignment results in a proportionate reduction of the interest rather than a complete transfer. For example, if the current ORRIS owner transfers a 5% interest and their remaining interest is reduced by 2%, resulting in a 3% retained interest. 3. Assignment with consent provision: This type of assignment may require the consent of the operator or working interest owner before it can be fully executed. The assignment document would include provisions outlining the conditions under which consent is required and the obligations of the parties involved in obtaining such consent. In summary, the Harris Texas Assignment of Overriding Royalty Interest with Proportionate Reduction is a legally binding document that allows for the transfer of an ORRIS in Harris County, Texas. The specific terms and variations of this assignment can be tailored to meet the needs and negotiations of the parties involved.
