Houston Texas Assignment of Overriding Royalty Interest with Proportionate Reduction

• Category: Oil Gas and Minerals - Assignments
• State: Multi-State
• City: Houston
• Control #: US-OG-282
• Format: Word; Rich Text

Description

This form is used by the Assignor to transfer, assign, and convey to Assignee an overriding royalty interest in a lease which may be proportionately reduced. Houston, Texas is a bustling city located in the southeastern part of the state. It is known as the fourth-largest city in the United States and is a major hub for industries such as oil and gas, healthcare, and aerospace. Houston is also home to numerous cultural attractions, including museums, parks, and a vibrant culinary scene. When it comes to the oil and gas industry, Houston plays a significant role due to its proximity to the Gulf of Mexico and the presence of major oil companies and refineries in the region. In this context, the term "Assignment of Overriding Royalty Interest with Proportionate Reduction" refers to a specific legal transaction related to the ownership and transfer of mineral rights in the oil and gas industry. An overriding royalty interest (ORRIS) is a type of royalty interest that is carved out of the working interest in an oil and gas lease. It entitles the owner to a share of the proceeds from the production of oil and gas, without having to bear any of the costs associated with drilling and operating the wells. Assigning an ORRIS involves transferring the rights to receive this share of the proceeds from one party to another. In Houston, there are different types of assignments of overriding royalty interest with proportionate reduction. These may vary depending on the specific terms and conditions outlined in the assignment agreement. Some common types include: 1. Partial Assignment with Proportionate Reduction: This type involves transferring a portion of the ORRIS to another party while proportionately reducing the remaining ORRIS retained by the assigning party. For example, if an assigning party holds a 50% ORRIS, they might choose to assign 25% to another party, resulting in a 25% ORRIS for each party. 2. Complete Assignment with Proportionate Reduction: In this scenario, the assigning party transfers their entire ORRIS to another party while proportionately reducing the ORRIS share of any remaining parties. For instance, if there were initially four parties each holding a 25% ORRIS, and one party assigns their interest, the remaining three parties would now hold a 33.33% ORRIS each. 3. Assignment of Specific Tracts or Wells: Sometimes, an assignment may focus on specific tracts or wells within an oil and gas lease. This type of assignment allows for targeted transfers of overriding royalty interest, enabling parties to have more flexibility in their ownership and investment strategies. It is important to note that the specific details and legal implications of an Assignment of Overriding Royalty Interest with Proportionate Reduction can vary, and individuals involved in such transactions are advised to consult with legal professionals specializing in oil and gas law to ensure compliance and protection of their interests.

Houston, Texas is a bustling city located in the southeastern part of the state. It is known as the fourth-largest city in the United States and is a major hub for industries such as oil and gas, healthcare, and aerospace. Houston is also home to numerous cultural attractions, including museums, parks, and a vibrant culinary scene. When it comes to the oil and gas industry, Houston plays a significant role due to its proximity to the Gulf of Mexico and the presence of major oil companies and refineries in the region. In this context, the term "Assignment of Overriding Royalty Interest with Proportionate Reduction" refers to a specific legal transaction related to the ownership and transfer of mineral rights in the oil and gas industry. An overriding royalty interest (ORRIS) is a type of royalty interest that is carved out of the working interest in an oil and gas lease. It entitles the owner to a share of the proceeds from the production of oil and gas, without having to bear any of the costs associated with drilling and operating the wells. Assigning an ORRIS involves transferring the rights to receive this share of the proceeds from one party to another. In Houston, there are different types of assignments of overriding royalty interest with proportionate reduction. These may vary depending on the specific terms and conditions outlined in the assignment agreement. Some common types include: 1. Partial Assignment with Proportionate Reduction: This type involves transferring a portion of the ORRIS to another party while proportionately reducing the remaining ORRIS retained by the assigning party. For example, if an assigning party holds a 50% ORRIS, they might choose to assign 25% to another party, resulting in a 25% ORRIS for each party. 2. Complete Assignment with Proportionate Reduction: In this scenario, the assigning party transfers their entire ORRIS to another party while proportionately reducing the ORRIS share of any remaining parties. For instance, if there were initially four parties each holding a 25% ORRIS, and one party assigns their interest, the remaining three parties would now hold a 33.33% ORRIS each. 3. Assignment of Specific Tracts or Wells: Sometimes, an assignment may focus on specific tracts or wells within an oil and gas lease. This type of assignment allows for targeted transfers of overriding royalty interest, enabling parties to have more flexibility in their ownership and investment strategies. It is important to note that the specific details and legal implications of an Assignment of Overriding Royalty Interest with Proportionate Reduction can vary, and individuals involved in such transactions are advised to consult with legal professionals specializing in oil and gas law to ensure compliance and protection of their interests.