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.
Franklin Ohio Reservation of Overriding Royalty Interest is a legal provision that grants a particular person or entity the right to receive a portion of the proceeds generated from the production of oil, gas, or other minerals on a property located in Franklin County, Ohio. This type of royalty interest is created through a contractual agreement between the property owner, known as the "granter," and the recipient of the interest, referred to as the "grantee." The Franklin Ohio Reservation of Overriding Royalty Interest is often established to incentivize and compensate the grantee for their involvement in exploring, developing, or producing minerals on the property. It allows them to benefit from any profits generated from the extraction or sale of these minerals, regardless of whether they are the actual property owner. There are various types of Franklin Ohio Reservation of Overriding Royalty Interest, each with their own specifics and conditions outlined in the contractual agreement. Some common types include: 1. Fractional Overriding Royalty Interest: This type of interest grants the grantee a specific percentage of the total revenue generated from the sale of minerals produced on the property. 2. Fixed Overriding Royalty Interest: Here, the grantee receives a fixed amount in monetary terms for each unit (barrel, cubic foot, ton, etc.) of mineral produced, irrespective of the market price. 3. Cost-Free Overriding Royalty Interest: This type of interest ensures that the grantee does not bear any costs associated with the exploration, drilling, extraction, or processing of minerals. They only receive a share of the revenue. 4. Time-Limited Overriding Royalty Interest: In certain cases, the grantee's right to receive royalties may be limited to a specific time period, after which the interest reverts to the property owner. 5. Gross Overriding Royalty Interest: Unlike the net overriding royalty interest (which deducts production costs from the royalty calculation), the gross overriding royalty interest entitles the grantee to a share of the total revenue generated from mineral sales, without any deductions. These different types of Franklin Ohio Reservation of Overriding Royalty Interest provide flexibility for property owners and grantees to negotiate terms that best suit their respective needs and interests. It is crucial for both parties to carefully consider the language and provisions of the agreement before entering into such arrangements to ensure a fair and beneficial outcome for all involved.
