Franklin Ohio Reservation of Production Payment

• Category: Oil Gas and Minerals - Assignments
• State: Multi-State
• County: Franklin
• Control #: US-OG-481
• Format: Word; Rich Text

Description

This form is used for the assignor to except from the assignment and reserve out of the interests assigned to assignee a production payment. Franklin Ohio Reservation of Production Payment, also known as FRANK OO RPP, is a legal term used in the oil and gas industry. It refers to a specific type of reservation within a mineral lease agreement that allows the lessor to receive a percentage of the production proceeds from the leased property. FRANK OO RPP is designed to provide the lessor with a continuous stream of income based on the quantity and value of the minerals extracted from the leased property. This arrangement is commonly used in Ohio to balance the financial interests of the lessor and the lessee. There are two main types of Franklin Ohio Reservation of Production Payments: 1. Fractional Royalty Interest: Under this type, the lessor is entitled to a fractional share of the production proceeds. This percentage is predetermined and specified in the lease agreement. For example, if the fractional royalty interest is set at 1/8, the lessor will receive 1/8th of the total production income generated. 2. Overriding Royalty Interest: This type of reservation grants the lessor a percentage of the production proceeds, calculated separately from any other royalties or interests specified in the lease agreement. The overriding royalty interest is typically expressed as a fixed percentage, such as 2 or 3 percent, and is not subject to any deductions for expenses or taxes. In both cases, the Franklin Ohio Reservation of Production Payment is secured by a lien filed against the production proceeds, ensuring that the lessor receives the agreed-upon share of the income before any other distributions or payments are made. Understanding the Franklin Ohio Reservation of Production Payment is crucial for both lessors and lessees involved in mineral lease agreements. It provides a mechanism to fairly distribute the economic benefits of oil and gas production while protecting the rights and interests of all parties involved. Keywords: Franklin Ohio Reservation of Production Payment, FRANK OO RPP, mineral lease agreement, oil and gas industry, lessor, production proceeds, continuous income stream, financial interests, fractional royalty interest, overriding royalty interest, predetermined percentage, fixed percentage, lien, lessor's rights and interests.

Franklin Ohio Reservation of Production Payment, also known as FRANK OO RPP, is a legal term used in the oil and gas industry. It refers to a specific type of reservation within a mineral lease agreement that allows the lessor to receive a percentage of the production proceeds from the leased property. FRANK OO RPP is designed to provide the lessor with a continuous stream of income based on the quantity and value of the minerals extracted from the leased property. This arrangement is commonly used in Ohio to balance the financial interests of the lessor and the lessee. There are two main types of Franklin Ohio Reservation of Production Payments: 1. Fractional Royalty Interest: Under this type, the lessor is entitled to a fractional share of the production proceeds. This percentage is predetermined and specified in the lease agreement. For example, if the fractional royalty interest is set at 1/8, the lessor will receive 1/8th of the total production income generated. 2. Overriding Royalty Interest: This type of reservation grants the lessor a percentage of the production proceeds, calculated separately from any other royalties or interests specified in the lease agreement. The overriding royalty interest is typically expressed as a fixed percentage, such as 2 or 3 percent, and is not subject to any deductions for expenses or taxes. In both cases, the Franklin Ohio Reservation of Production Payment is secured by a lien filed against the production proceeds, ensuring that the lessor receives the agreed-upon share of the income before any other distributions or payments are made. Understanding the Franklin Ohio Reservation of Production Payment is crucial for both lessors and lessees involved in mineral lease agreements. It provides a mechanism to fairly distribute the economic benefits of oil and gas production while protecting the rights and interests of all parties involved. Keywords: Franklin Ohio Reservation of Production Payment, FRANK OO RPP, mineral lease agreement, oil and gas industry, lessor, production proceeds, continuous income stream, financial interests, fractional royalty interest, overriding royalty interest, predetermined percentage, fixed percentage, lien, lessor's rights and interests.