Houston Texas Assignment of Overriding Royalty Interest Limited As to Depth

• Category: Oil Gas and Minerals - Assignments
• State: Multi-State
• City: Houston
• Control #: US-OG-290
• 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, which is limited to depth. Houston, Texas Assignment of Overriding Royalty Interest Limited As to Depth refers to a legal agreement that allows the transfer of ownership rights in the form of overriding royalty interests within the oil and gas industry. This type of assignment specifically restricts the extent of depth to which the interest applies. An overriding royalty interest (ORRIS) is a share of the oil and gas production revenue that an owner is entitled to receive, usually expressed as a percentage, from the proceeds of a lease or well. In Houston, Texas, where the oil and gas industry thrives, assignments of ORRIS are common transactions aimed at providing investors with income streams derived from the production activities in the region. The "Limited As to Depth" stipulation in the Houston, Texas Assignment of Overriding Royalty Interest means that the interest granted is not applicable to all depths of the producing wells. This is crucial because oil and gas reservoirs can vary in their vertical distribution, and the assignment may only cover certain depths specified in the agreement. For instance, the assignment may exclude deeper reservoirs or formations that are not economically viable or are subject to different lease terms. There might be various types of assignments of overriding royalty interests limited as to depth in Houston, Texas, each serving unique purposes. Some common types include: 1. Vertical Limited Assignment: This type of assignment limits the interest to specific vertical zones of the well, such as an upper or lower formation. It enables parties to focus on specific productive areas while excluding others. 2. Depth-Limited Assignment: These assignments restrict the assigned ORRIS to a specific depth range within the well bore. For instance, the assignment may cover depths between 5,000 and 10,000 feet to ensure the interest is limited to a specific productive zone. 3. Formation-Specific Assignment: This assignment type restricts the interest to a particular geologic formation. It allows parties to target a specific reservoir or geological layer that holds the most promising production potential. 4. Production Horizon-Limited Assignment: This assignment grants the ORRIS only for a particular producing horizon, which refers to a specific depth range where hydrocarbon extraction is economically feasible. Parties may choose this type of assignment to focus on zones with known profitable production histories. By utilizing the Houston, Texas Assignment of Overriding Royalty Interest Limited As to Depth, investors and operators can precisely define the extent of their interests, ensuring efficient allocation of ownership and revenue distribution. This flexible framework enables parties to tailor their agreements to match their specific objectives, maximize returns, and mitigate risks associated with depth-dependent oil and gas production.

Houston, Texas Assignment of Overriding Royalty Interest Limited As to Depth refers to a legal agreement that allows the transfer of ownership rights in the form of overriding royalty interests within the oil and gas industry. This type of assignment specifically restricts the extent of depth to which the interest applies. An overriding royalty interest (ORRIS) is a share of the oil and gas production revenue that an owner is entitled to receive, usually expressed as a percentage, from the proceeds of a lease or well. In Houston, Texas, where the oil and gas industry thrives, assignments of ORRIS are common transactions aimed at providing investors with income streams derived from the production activities in the region. The "Limited As to Depth" stipulation in the Houston, Texas Assignment of Overriding Royalty Interest means that the interest granted is not applicable to all depths of the producing wells. This is crucial because oil and gas reservoirs can vary in their vertical distribution, and the assignment may only cover certain depths specified in the agreement. For instance, the assignment may exclude deeper reservoirs or formations that are not economically viable or are subject to different lease terms. There might be various types of assignments of overriding royalty interests limited as to depth in Houston, Texas, each serving unique purposes. Some common types include: 1. Vertical Limited Assignment: This type of assignment limits the interest to specific vertical zones of the well, such as an upper or lower formation. It enables parties to focus on specific productive areas while excluding others. 2. Depth-Limited Assignment: These assignments restrict the assigned ORRIS to a specific depth range within the well bore. For instance, the assignment may cover depths between 5,000 and 10,000 feet to ensure the interest is limited to a specific productive zone. 3. Formation-Specific Assignment: This assignment type restricts the interest to a particular geologic formation. It allows parties to target a specific reservoir or geological layer that holds the most promising production potential. 4. Production Horizon-Limited Assignment: This assignment grants the ORRIS only for a particular producing horizon, which refers to a specific depth range where hydrocarbon extraction is economically feasible. Parties may choose this type of assignment to focus on zones with known profitable production histories. By utilizing the Houston, Texas Assignment of Overriding Royalty Interest Limited As to Depth, investors and operators can precisely define the extent of their interests, ensuring efficient allocation of ownership and revenue distribution. This flexible framework enables parties to tailor their agreements to match their specific objectives, maximize returns, and mitigate risks associated with depth-dependent oil and gas production.