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
Description
How to fill out Houston Texas Assignment Of Overriding Royalty Interest Limited As To Depth?
Preparing legal paperwork can be cumbersome. In addition, if you decide to ask a legal professional to draft a commercial contract, papers for ownership transfer, pre-marital agreement, divorce paperwork, or the Houston Assignment of Overriding Royalty Interest Limited As to Depth, it may cost you a fortune. So what is the best way to save time and money and draft legitimate forms in total compliance with your state and local laws? US Legal Forms is an excellent solution, whether you're looking for templates for your personal or business needs.
US Legal Forms is biggest online collection of state-specific legal documents, providing users with the up-to-date and professionally verified forms for any scenario accumulated all in one place. Therefore, if you need the latest version of the Houston Assignment of Overriding Royalty Interest Limited As to Depth, you can easily locate it on our platform. Obtaining the papers requires a minimum of time. Those who already have an account should check their subscription to be valid, log in, and select the sample with the Download button. If you haven't subscribed yet, here's how you can get the Houston Assignment of Overriding Royalty Interest Limited As to Depth:
- Glance through the page and verify there is a sample for your area.
- Examine the form description and use the Preview option, if available, to make sure it's the sample you need.
- Don't worry if the form doesn't satisfy your requirements - search for the right one in the header.
- Click Buy Now when you find the required sample and select the best suitable subscription.
- Log in or register for an account to pay for your subscription.
- Make a payment with a credit card or through PayPal.
- Choose the file format for your Houston Assignment of Overriding Royalty Interest Limited As to Depth and download it.
When finished, you can print it out and complete it on paper or upload the template to an online editor for a faster and more convenient fill-out. US Legal Forms allows you to use all the paperwork ever acquired many times - you can find your templates in the My Forms tab in your profile. Give it a try now!
Form popularity
FAQ
A royalty interest is a non-possessory real property interest in oil and gas production free of production and operating expenses, which may be created by grant or by reservation or exception.
After confirming your legal ownership with an attorney at law, you need to draw up a deed of transfer form in your name and register it with the county records office as the mineral owner. The land transaction, leasing transaction, and royalty compliance go through the county office.
Overriding Royalty Interest (ORRI) ? a percentage share of production, or the value derived from production, which is free of all costs of drilling and producing, and is created by the lessee or working interest owner and paid by the lessee or working interest owner.
Call the county where the minerals are located and ask how to transfer mineral ownership after death. They will probably advise you to submit a copy of the death certificate, probate documents (if any), and a copy of the will (or affidavit of heirship if there is no will).
Transfer Your Mineral Rights Transfer by deed: You can sell your mineral rights to another person or company by deed. Transfer by will: You can specify who you want to inherit your mineral rights in your will. Transfer by lease: You can lease mineral rights to a third party through a lease agreement.
A royalty interest is a non-possessory real property interest in oil and gas production free of production and operating expenses, which may be created by grant or by reservation or exception.
A royalty interest is an interest retained in the output of a property when the owner of mineral rights enters into a lease agreement. A royalty interest entitles the mineral rights owner to receive a portion of the minerals produced or a portion of the gross revenue from sold production.
A royalty interest is a property interest that entitles the owner to receive a share of the production revenue. An individual or company that owns a royalty interest does not have to pay for any of the operational costs required to produce the resource, but they still own a portion of the revenue produced.
Royalty owner means the person who pursuant to a lease arrangement with another has the right to receive, free of costs, an allocation of production or payments based upon the value of production.
The four types of mineral ownership are: Mineral Interest ? interest generated after the production of oil and gas after the sale of a deed or a lease. Royalty Interest ? occurs when mineral rights are leased.
