This form is used when, as a result of continuous production from the Lease and Lands, payout, as defined in an Assignment, has occurred, and Declarant is entitled to elect to convert the Override to a Working Interest, as provided for in the Assignment.
The Lima Arizona Declaration of Election to Convert Overriding Royalty Interest to Working Interest is an important legal document that pertains to the transfer of ownership and interests in oil and gas properties. It allows the holder of an overriding royalty interest to convert it into a working interest, thereby gaining more control and participation in the exploration, development, and production activities. This declaration serves as a formal agreement between the parties involved, typically the overriding royalty interest owner and the working interest owner, and outlines the terms, conditions, and implications of the conversion. The document may vary depending on the specific circumstances and arrangements between the parties, resulting in different types of Lima Arizona Declarations of Election to Convert Overriding Royalty Interest to Working Interest. Some of these variants include: 1. Lima Arizona Declaration of Election — Partial Conversion: This type of declaration allows the overriding royalty interest owner to convert only a portion of their interest into a working interest, enabling a balanced sharing of risks and benefits between the two parties. 2. Lima Arizona Declaration of Election — Full Conversion: In this case, the overriding royalty interest owner opts to convert their entire interest into a working interest, assuming complete operational responsibility and participation in all aspects of the property. 3. Lima Arizona Declaration of Election — Voluntary Conversion: This variant pertains to a situation where the overriding royalty interest owner voluntarily chooses to convert their interest into a working interest, without any legal obligation or external influence. 4. Lima Arizona Declaration of Election — Compulsory Conversion: If certain conditions or events outlined within the agreement are met, this declaration allows the working interest owner to enforce the conversion of the overriding royalty interest into a working interest. Overall, the Lima Arizona Declaration of Election to Convert Overriding Royalty Interest to Working Interest plays a crucial role in defining the rights, responsibilities, and obligations of the parties involved when it comes to the conversion of interests in oil and gas properties. It enables greater flexibility, collaboration, and control in the management of these assets, ensuring equitable distribution of profits, risks, and decision-making power.The Lima Arizona Declaration of Election to Convert Overriding Royalty Interest to Working Interest is an important legal document that pertains to the transfer of ownership and interests in oil and gas properties. It allows the holder of an overriding royalty interest to convert it into a working interest, thereby gaining more control and participation in the exploration, development, and production activities. This declaration serves as a formal agreement between the parties involved, typically the overriding royalty interest owner and the working interest owner, and outlines the terms, conditions, and implications of the conversion. The document may vary depending on the specific circumstances and arrangements between the parties, resulting in different types of Lima Arizona Declarations of Election to Convert Overriding Royalty Interest to Working Interest. Some of these variants include: 1. Lima Arizona Declaration of Election — Partial Conversion: This type of declaration allows the overriding royalty interest owner to convert only a portion of their interest into a working interest, enabling a balanced sharing of risks and benefits between the two parties. 2. Lima Arizona Declaration of Election — Full Conversion: In this case, the overriding royalty interest owner opts to convert their entire interest into a working interest, assuming complete operational responsibility and participation in all aspects of the property. 3. Lima Arizona Declaration of Election — Voluntary Conversion: This variant pertains to a situation where the overriding royalty interest owner voluntarily chooses to convert their interest into a working interest, without any legal obligation or external influence. 4. Lima Arizona Declaration of Election — Compulsory Conversion: If certain conditions or events outlined within the agreement are met, this declaration allows the working interest owner to enforce the conversion of the overriding royalty interest into a working interest. Overall, the Lima Arizona Declaration of Election to Convert Overriding Royalty Interest to Working Interest plays a crucial role in defining the rights, responsibilities, and obligations of the parties involved when it comes to the conversion of interests in oil and gas properties. It enables greater flexibility, collaboration, and control in the management of these assets, ensuring equitable distribution of profits, risks, and decision-making power.
