Kings New York Assignment of Overriding Royalty Interest to Become Effective At Payout, With Payout Based on Volume of Oil Produced

• Category: Oil Gas and Minerals - Assignments
• State: Multi-State
• County: Kings
• Control #: US-OG-283
• 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, to be effective at payout. Kings New York Assignment of Overriding Royalty Interest to Become Effective At Payout, With Payout Based on Volume of Oil Produced is a type of agreement that allows individuals or entities to receive a predetermined portion of the revenue generated from the production of oil, based on the volume of oil produced. This arrangement is commonly used in the oil and gas industry to provide financial incentives to individuals or entities who have an overriding royalty interest in a well or oilfield. The assignment becomes effective at payout, meaning the assigned party starts receiving their share of the revenue once the production reaches a certain level or when the well or oilfield becomes profitable. The payout amount is directly tied to the volume of oil produced, which means that the more oil is extracted, the higher the payout will be. The Kings New York Assignment of Overriding Royalty Interest to Become Effective At Payout, With Payout Based on Volume of Oil Produced may have different variations or types, depending on the specific terms and conditions agreed upon by the parties involved. Some common variations include: 1. Fixed Percentage Payout: In this type, the assigned party receives a fixed percentage of the revenue generated from the oil production, based on the volume of oil produced. For example, if the assigned percentage is 2% and the total revenue generated is $1,000,000, the assigned party would receive $20,000. 2. Sliding Scale Payout: This type involves a payout structure that varies based on different production thresholds. For instance, the assigned party may receive a lower percentage payout for the initial volume of oil produced, but as the production increases, the payout percentage could gradually increase. 3. Payout Cap: In some cases, there may be a cap on the maximum payout amount, regardless of the volume of oil produced. This ensures that the assigned party's share does not exceed a predetermined limit, regardless of how much revenue is generated. It is important to note that the specific terms and conditions of the Kings New York Assignment of Overriding Royalty Interest to Become Effective At Payout, With Payout Based on Volume of Oil Produced may vary depending on the parties involved and the specific circumstances of the agreement. It is advisable to consult legal professionals and industry experts to understand the nuances and implications of such agreements.

Kings New York Assignment of Overriding Royalty Interest to Become Effective At Payout, With Payout Based on Volume of Oil Produced is a type of agreement that allows individuals or entities to receive a predetermined portion of the revenue generated from the production of oil, based on the volume of oil produced. This arrangement is commonly used in the oil and gas industry to provide financial incentives to individuals or entities who have an overriding royalty interest in a well or oilfield. The assignment becomes effective at payout, meaning the assigned party starts receiving their share of the revenue once the production reaches a certain level or when the well or oilfield becomes profitable. The payout amount is directly tied to the volume of oil produced, which means that the more oil is extracted, the higher the payout will be. The Kings New York Assignment of Overriding Royalty Interest to Become Effective At Payout, With Payout Based on Volume of Oil Produced may have different variations or types, depending on the specific terms and conditions agreed upon by the parties involved. Some common variations include: 1. Fixed Percentage Payout: In this type, the assigned party receives a fixed percentage of the revenue generated from the oil production, based on the volume of oil produced. For example, if the assigned percentage is 2% and the total revenue generated is $1,000,000, the assigned party would receive $20,000. 2. Sliding Scale Payout: This type involves a payout structure that varies based on different production thresholds. For instance, the assigned party may receive a lower percentage payout for the initial volume of oil produced, but as the production increases, the payout percentage could gradually increase. 3. Payout Cap: In some cases, there may be a cap on the maximum payout amount, regardless of the volume of oil produced. This ensures that the assigned party's share does not exceed a predetermined limit, regardless of how much revenue is generated. It is important to note that the specific terms and conditions of the Kings New York Assignment of Overriding Royalty Interest to Become Effective At Payout, With Payout Based on Volume of Oil Produced may vary depending on the parties involved and the specific circumstances of the agreement. It is advisable to consult legal professionals and industry experts to understand the nuances and implications of such agreements.