Suffolk New York Assignment of Overriding Royalty Interest with Proportionate Reduction

• Category: Oil Gas and Minerals - Assignments
• State: Multi-State
• County: Suffolk
• 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. The Suffolk New York Assignment of Overriding Royalty Interest with Proportionate Reduction is a legal instrument used in the oil and gas industry. This type of assignment is designed to transfer the rights to receive overriding royalties from one party to another, while also addressing the potential reduction of those royalties. An overriding royalty interest (ORRIS) is a non-operating interest in an oil or gas property that entitles the interest holder to a percentage of the revenues generated by the property. In Suffolk New York, these interests can be subject to assignment, allowing for the transfer of ownership. The Assignment of Overriding Royalty Interest with Proportionate Reduction is often used in cases where multiple parties hold Orris in the same property. To avoid any disputes or inequities, this assignment provides for a proportionate reduction in the assigned overriding royalty interest. This means that if the royalty interest being assigned is, for example, 2%, and there are already existing overriding royalty interests totaling 8% on the property, the proportionate reduction clause will ensure that the assigned interest is adjusted accordingly to maintain the overall burden on the property. While there may not be different types of Suffolk New York Assignment of Overriding Royalty Interest with Proportionate Reduction, there are variations and additional clauses that can be included in the assignment, depending on specific circumstances. These can include clauses addressing the effective date of the assignment, obligations of the assignor and assignee, warranties and representations, and provisions for dispute resolution. In summary, the Suffolk New York Assignment of Overriding Royalty Interest with Proportionate Reduction is a legal document used in the oil and gas industry to transfer ownership of an overriding royalty interest while addressing the potential reduction due to existing interests. By including proportionate reduction clauses, this assignment ensures fairness among multiple interest holders. These assignments can be customized with additional clauses to suit specific situations.

The Suffolk New York Assignment of Overriding Royalty Interest with Proportionate Reduction is a legal instrument used in the oil and gas industry. This type of assignment is designed to transfer the rights to receive overriding royalties from one party to another, while also addressing the potential reduction of those royalties. An overriding royalty interest (ORRIS) is a non-operating interest in an oil or gas property that entitles the interest holder to a percentage of the revenues generated by the property. In Suffolk New York, these interests can be subject to assignment, allowing for the transfer of ownership. The Assignment of Overriding Royalty Interest with Proportionate Reduction is often used in cases where multiple parties hold Orris in the same property. To avoid any disputes or inequities, this assignment provides for a proportionate reduction in the assigned overriding royalty interest. This means that if the royalty interest being assigned is, for example, 2%, and there are already existing overriding royalty interests totaling 8% on the property, the proportionate reduction clause will ensure that the assigned interest is adjusted accordingly to maintain the overall burden on the property. While there may not be different types of Suffolk New York Assignment of Overriding Royalty Interest with Proportionate Reduction, there are variations and additional clauses that can be included in the assignment, depending on specific circumstances. These can include clauses addressing the effective date of the assignment, obligations of the assignor and assignee, warranties and representations, and provisions for dispute resolution. In summary, the Suffolk New York Assignment of Overriding Royalty Interest with Proportionate Reduction is a legal document used in the oil and gas industry to transfer ownership of an overriding royalty interest while addressing the potential reduction due to existing interests. By including proportionate reduction clauses, this assignment ensures fairness among multiple interest holders. These assignments can be customized with additional clauses to suit specific situations.