This provision provides for the assignor to except from this assignment and reserve an overriding royalty interest of all oil, gas, casinghead gas, and other minerals that may be produced from the lands under the terms of the Leases that are the subject of this assignment.
Cook Illinois Reservation of Overriding Royalty Interest (CIRRI) is a legal concept used in the United States in the field of oil and gas exploration and production. It represents a portion of the mineral rights retained by the granter (often the landowner) when leasing or selling the property. CIRRI grants a non-operating interest holder the right to receive a share of the production revenue generated from oil and gas resources on the property. CIRRI is commonly used in Illinois, a state known for its significant oil and gas reserves. This reservation can be found in various types of oil and gas leases, allowing the granter to retain a certain percentage of the revenue derived from the extracted resources. The specific terms and conditions of CIRRI are negotiated between the granter and the lessee, typically an oil or gas exploration company. The purpose of Cook Illinois Reservation of Overriding Royalty Interest is to provide landowners with ongoing financial benefits even after selling or leasing their mineral rights. By retaining a share of the revenue generated, landowners can benefit from the production without having to bear the operational costs and risks associated with exploration and production activities. There are different types of Cook Illinois Reservation of Overriding Royalty Interest, including: 1. Fixed Percentage Override: This type of CIRRI grants the landowner a fixed percentage of the production revenue. The exact percentage can vary depending on the negotiation between the parties involved. 2. Time-limited Override: In some cases, the CIRRI may have a specific time limitation. This means that the landowner retains the overriding royalty interest for a defined period, after which it may expire or reduce to a lower percentage. 3. Area-specific Override: CIRRI can also be limited to specific areas within a property or lease. This allows the landowner to retain overriding royalties only from specific oil or gas wells or locations, rather than the entire property. 4. Stacked Overrides: It is possible for a single property to have multiple Cook Illinois Reservation of Overriding Royalty Interests. In such cases, if the CIRRI interests are "stacked," each interest holder receives a share of the revenue proportionate to their specific overriding royalty interest. Overall, Cook Illinois Reservation of Overriding Royalty Interest provides landowners with a financial stake in the production of oil and gas resources on their property. It allows them to benefit from ongoing revenue streams while minimizing the risks and expenses of extraction operations.Cook Illinois Reservation of Overriding Royalty Interest (CIRRI) is a legal concept used in the United States in the field of oil and gas exploration and production. It represents a portion of the mineral rights retained by the granter (often the landowner) when leasing or selling the property. CIRRI grants a non-operating interest holder the right to receive a share of the production revenue generated from oil and gas resources on the property. CIRRI is commonly used in Illinois, a state known for its significant oil and gas reserves. This reservation can be found in various types of oil and gas leases, allowing the granter to retain a certain percentage of the revenue derived from the extracted resources. The specific terms and conditions of CIRRI are negotiated between the granter and the lessee, typically an oil or gas exploration company. The purpose of Cook Illinois Reservation of Overriding Royalty Interest is to provide landowners with ongoing financial benefits even after selling or leasing their mineral rights. By retaining a share of the revenue generated, landowners can benefit from the production without having to bear the operational costs and risks associated with exploration and production activities. There are different types of Cook Illinois Reservation of Overriding Royalty Interest, including: 1. Fixed Percentage Override: This type of CIRRI grants the landowner a fixed percentage of the production revenue. The exact percentage can vary depending on the negotiation between the parties involved. 2. Time-limited Override: In some cases, the CIRRI may have a specific time limitation. This means that the landowner retains the overriding royalty interest for a defined period, after which it may expire or reduce to a lower percentage. 3. Area-specific Override: CIRRI can also be limited to specific areas within a property or lease. This allows the landowner to retain overriding royalties only from specific oil or gas wells or locations, rather than the entire property. 4. Stacked Overrides: It is possible for a single property to have multiple Cook Illinois Reservation of Overriding Royalty Interests. In such cases, if the CIRRI interests are "stacked," each interest holder receives a share of the revenue proportionate to their specific overriding royalty interest. Overall, Cook Illinois Reservation of Overriding Royalty Interest provides landowners with a financial stake in the production of oil and gas resources on their property. It allows them to benefit from ongoing revenue streams while minimizing the risks and expenses of extraction operations.
