Phoenix Arizona Declaration of Election by Lessor to Convert Royalty Interest to Working Interest

• Category: Oil Gas and Minerals - Declarations
• State: Multi-State
• City: Phoenix
• Control #: US-OG-311
• Format: Word; Rich Text

Description

This form is used when the Declarant reserved a (Fraction or Percentage) royalty interest, and the option, but not the obligation, to convert the reserved royalty interest to an undivided percentage working interest, at payout, as defined in the Lease. The Phoenix Arizona Declaration of Election by Lessor to Convert Royalty Interest to Working Interest is a legal document commonly used in the oil and gas industry. This declaration outlines the decision of the lessor (the owner of the rights to the minerals) to convert their royalty interest into a working interest. The conversion allows the lessor to actively participate in the exploration, development, and production of the oil and gas resources on their property. Keywords: Phoenix Arizona, Declaration of Election, Lessor, Convert, Royalty Interest, Working Interest, Oil and Gas Industry Different types of Phoenix Arizona Declaration of Election by Lessor to Convert Royalty Interest to Working Interest may include variations such as: 1. Conditional Conversion Declaration: This type of declaration may be used when the lessor's decision to convert their royalty interest to working interest is subject to certain conditions, such as a minimum production threshold or specific investment commitments. 2. Partial Conversion Declaration: In this scenario, the lessor may choose to convert only a portion of their royalty interest into a working interest, allowing them to maintain some passive income while also becoming an active participant in the operations. 3. Non-Operated Working Interest Conversion Declaration: This type of declaration is applicable when the lessor wishes to convert their royalty interest into a working interest but prefers to be a non-operating working interest owner. This means that they will contribute financially but will not be directly involved in decision-making or operational aspects. 4. Lease-Specific Conversion Declaration: Sometimes, the declaration may be specific to a particular lease or property. In such cases, the lessor may choose to convert their royalty interest to working interest for a specific lease while retaining the royalty interest for other leases they own. These different types of declarations cater to various scenarios and allow lessors to customize their involvement and financial commitment in oil and gas operations according to their preferences and circumstances. It is important to consult with legal and industry professionals to ensure proper drafting and execution of the Phoenix Arizona Declaration of Election by Lessor to Convert Royalty Interest to Working Interest, as it involves complex legal and financial considerations.

The Phoenix Arizona Declaration of Election by Lessor to Convert Royalty Interest to Working Interest is a legal document commonly used in the oil and gas industry. This declaration outlines the decision of the lessor (the owner of the rights to the minerals) to convert their royalty interest into a working interest. The conversion allows the lessor to actively participate in the exploration, development, and production of the oil and gas resources on their property. Keywords: Phoenix Arizona, Declaration of Election, Lessor, Convert, Royalty Interest, Working Interest, Oil and Gas Industry Different types of Phoenix Arizona Declaration of Election by Lessor to Convert Royalty Interest to Working Interest may include variations such as: 1. Conditional Conversion Declaration: This type of declaration may be used when the lessor's decision to convert their royalty interest to working interest is subject to certain conditions, such as a minimum production threshold or specific investment commitments. 2. Partial Conversion Declaration: In this scenario, the lessor may choose to convert only a portion of their royalty interest into a working interest, allowing them to maintain some passive income while also becoming an active participant in the operations. 3. Non-Operated Working Interest Conversion Declaration: This type of declaration is applicable when the lessor wishes to convert their royalty interest into a working interest but prefers to be a non-operating working interest owner. This means that they will contribute financially but will not be directly involved in decision-making or operational aspects. 4. Lease-Specific Conversion Declaration: Sometimes, the declaration may be specific to a particular lease or property. In such cases, the lessor may choose to convert their royalty interest to working interest for a specific lease while retaining the royalty interest for other leases they own. These different types of declarations cater to various scenarios and allow lessors to customize their involvement and financial commitment in oil and gas operations according to their preferences and circumstances. It is important to consult with legal and industry professionals to ensure proper drafting and execution of the Phoenix Arizona Declaration of Election by Lessor to Convert Royalty Interest to Working Interest, as it involves complex legal and financial considerations.