Pima Arizona Assignment of Overriding Royalty Interest by Working Interest Owner, Single Lease, Stated Percentage

• Category: Oil Gas and Minerals - Assignments
• State: Multi-State
• County: Pima
• Control #: US-OG-287
• 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 and all oil, gas and other minerals produced, saved and sold from the Lease and Land. Lima Arizona Assignment of Overriding Royalty Interest in Working Interest Owner, Single Lease, Stated Percentage: In the oil and gas industry, the Lima Arizona Assignment of Overriding Royalty Interest in Working Interest Owner refers to a legal document that grants a working interest owner the right to assign a percentage of their overriding royalty interest in a specific lease. This assignment allows the working interest owner to transfer a portion of the royalty interest to another party in exchange for compensation or other considerations. The overriding royalty interest is a non-operational interest in an oil and gas lease, which means it entitles the owner to a percentage of the revenue generated from the production of oil or gas, without bearing the cost of operation or drilling expenses. This interest is usually created as an additional form of compensation for the working interest owner. By assigning a portion of the overriding royalty interest, the working interest owner can monetize their interest in the lease and diversify their investment portfolio. The Lima Arizona Assignment of Overriding Royalty Interest in Working Interest Owner can be categorized into different types based on the stated percentage being assigned. Some common types include: 1. Fractional Assignment: This type involves the assignment of a specific fraction or fractional percentage of the overriding royalty interest. For example, a working interest owner might assign 50% of their overriding royalty interest to another party. 2. Whole Interest Assignment: In this type, the entire overriding royalty interest owned by the working interest owner is transferred to another party. It means the assignee will receive 100% of the royalty interest associated with the lease. 3. Variable Percentage Assignment: This type allows the working interest owner to assign a variable percentage of their overriding royalty interest. The assigned percentage may vary based on certain factors such as production volumes, revenue thresholds, or timeframes. The Lima Arizona Assignment of Overriding Royalty Interest in Working Interest Owner, Single Lease, Stated Percentage provides a clear and transparent mechanism for transferring an interest in an oil and gas lease. It is essential to seek legal expertise and conduct thorough due diligence before entering into any such assignments to ensure compliance with applicable laws and to protect the interests of all involved parties. Keywords: Lima Arizona, assignment, overriding royalty interest, working interest owner, single lease, stated percentage, oil and gas industry, compensation, non-operational interest, drilling expenses, monetize, investment portfolio, fractional assignment, whole interest assignment, variable percentage assignment, legal document, due diligence.

Lima Arizona Assignment of Overriding Royalty Interest in Working Interest Owner, Single Lease, Stated Percentage: In the oil and gas industry, the Lima Arizona Assignment of Overriding Royalty Interest in Working Interest Owner refers to a legal document that grants a working interest owner the right to assign a percentage of their overriding royalty interest in a specific lease. This assignment allows the working interest owner to transfer a portion of the royalty interest to another party in exchange for compensation or other considerations. The overriding royalty interest is a non-operational interest in an oil and gas lease, which means it entitles the owner to a percentage of the revenue generated from the production of oil or gas, without bearing the cost of operation or drilling expenses. This interest is usually created as an additional form of compensation for the working interest owner. By assigning a portion of the overriding royalty interest, the working interest owner can monetize their interest in the lease and diversify their investment portfolio. The Lima Arizona Assignment of Overriding Royalty Interest in Working Interest Owner can be categorized into different types based on the stated percentage being assigned. Some common types include: 1. Fractional Assignment: This type involves the assignment of a specific fraction or fractional percentage of the overriding royalty interest. For example, a working interest owner might assign 50% of their overriding royalty interest to another party. 2. Whole Interest Assignment: In this type, the entire overriding royalty interest owned by the working interest owner is transferred to another party. It means the assignee will receive 100% of the royalty interest associated with the lease. 3. Variable Percentage Assignment: This type allows the working interest owner to assign a variable percentage of their overriding royalty interest. The assigned percentage may vary based on certain factors such as production volumes, revenue thresholds, or timeframes. The Lima Arizona Assignment of Overriding Royalty Interest in Working Interest Owner, Single Lease, Stated Percentage provides a clear and transparent mechanism for transferring an interest in an oil and gas lease. It is essential to seek legal expertise and conduct thorough due diligence before entering into any such assignments to ensure compliance with applicable laws and to protect the interests of all involved parties. Keywords: Lima Arizona, assignment, overriding royalty interest, working interest owner, single lease, stated percentage, oil and gas industry, compensation, non-operational interest, drilling expenses, monetize, investment portfolio, fractional assignment, whole interest assignment, variable percentage assignment, legal document, due diligence.