Pima Arizona Assignment of Overriding Royalty Interest with Proportionate Reduction

• Category: Oil Gas and Minerals - Assignments
• State: Multi-State
• County: Pima
• 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. Lima, Arizona is a town located in southeastern Arizona, known for its rich oil and gas resources. In the oil and gas industry, an Assignment of Overriding Royalty Interest with Proportionate Reduction is a legal agreement that transfers a portion of the royalties from a lease to a third party, while also proportionately reducing the original owner's share. This type of assignment is commonly used when multiple parties are involved in a lease or when additional capital is needed for drilling operations. There are various types of Lima Arizona Assignment of Overriding Royalty Interest with Proportionate Reduction, each catering to different circumstances and requirements. Some of these types include: 1. Partial Assignment: In this type, a percentage or a specific fraction of the overriding royalty interest is assigned to another party. The proportionate reduction is calculated based on the assigned percentage, and the original owner retains the remaining percentage. 2. Temporary Assignment: This type of assignment is often used in short-term agreements. It allows for the transfer of an overriding royalty interest to another party for a specified period, after which the interest reverts to the original owner, without any proportionate reduction. 3. Permanent Assignment: In contrast to temporary assignments, permanent assignments result in a permanent transfer of the overriding royalty interest to the assignee. The proportionate reduction is calculated based on the assigned interest, and the assignee becomes the permanent owner of that interest. 4. Proportional Reduction Agreement: This type of assignment aims to proportionately distribute a reduction in overriding royalty interest among multiple parties. It often occurs when the original owner and other parties collectively decide to reduce their interests to accommodate new parties or changes in lease terms. In summary, a Lima Arizona Assignment of Overriding Royalty Interest with Proportionate Reduction is a legal agreement used in the oil and gas industry to transfer a portion of the royalties from a lease to another party while proportionately reducing the original owner's share. This assignment can take various forms, including partial assignments, temporary assignments, permanent assignments, and proportional reduction agreements.

Lima, Arizona is a town located in southeastern Arizona, known for its rich oil and gas resources. In the oil and gas industry, an Assignment of Overriding Royalty Interest with Proportionate Reduction is a legal agreement that transfers a portion of the royalties from a lease to a third party, while also proportionately reducing the original owner's share. This type of assignment is commonly used when multiple parties are involved in a lease or when additional capital is needed for drilling operations. There are various types of Lima Arizona Assignment of Overriding Royalty Interest with Proportionate Reduction, each catering to different circumstances and requirements. Some of these types include: 1. Partial Assignment: In this type, a percentage or a specific fraction of the overriding royalty interest is assigned to another party. The proportionate reduction is calculated based on the assigned percentage, and the original owner retains the remaining percentage. 2. Temporary Assignment: This type of assignment is often used in short-term agreements. It allows for the transfer of an overriding royalty interest to another party for a specified period, after which the interest reverts to the original owner, without any proportionate reduction. 3. Permanent Assignment: In contrast to temporary assignments, permanent assignments result in a permanent transfer of the overriding royalty interest to the assignee. The proportionate reduction is calculated based on the assigned interest, and the assignee becomes the permanent owner of that interest. 4. Proportional Reduction Agreement: This type of assignment aims to proportionately distribute a reduction in overriding royalty interest among multiple parties. It often occurs when the original owner and other parties collectively decide to reduce their interests to accommodate new parties or changes in lease terms. In summary, a Lima Arizona Assignment of Overriding Royalty Interest with Proportionate Reduction is a legal agreement used in the oil and gas industry to transfer a portion of the royalties from a lease to another party while proportionately reducing the original owner's share. This assignment can take various forms, including partial assignments, temporary assignments, permanent assignments, and proportional reduction agreements.