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.
The Harris Texas Reservation of Overriding Royalty Interest is a legal concept that primarily pertains to oil and gas leases in the state of Texas. In this context, "Harris" refers to Harris County, which is a major county in Texas known for its significant oil and gas production. An overriding royalty interest (ORRIS) refers to a specific percentage of the gross production from a lease that is reserved for the benefit of a third party, separate from the lessor. A Harris Texas Reservation of Overriding Royalty Interest can be created when a mineral interest owner or lessee grants a percentage of their royalty interest to another party in addition to the primary lessor. This reservation can provide significant benefits to the overriding royalty interest holder, such as a share in the revenue generated from the production and sale of oil and gas resources. There are various types of Harris Texas Reservation of Overriding Royalty Interest, including: 1. Production Overriding Royalty Interest: This type of ORRIS entitles the holder to a percentage of the total production from a lease. The overriding royalty interest is typically carved out of the lessee's total working interest. 2. Lease-Based Overriding Royalty Interest: In some cases, an overriding royalty interest may be tied to a specific lease rather than the entirety of the lessee's working interest. This means that the ORRIS only applies to a particular lease and is not applicable to other leases held by the same lessee. 3. Time-Limited Overriding Royalty Interest: This type of ORRIS is in effect for a specific period of time, usually for the duration of the lease or a predetermined timeframe. Once the time limit is reached, the overriding royalty interest expires, and the holder no longer receives the associated benefits. 4. Floating Overriding Royalty Interest: A floating ORRIS is a percentage that adjusts based on the production levels of the lease. The overriding royalty interest holder receives a higher percentage if the lease's production exceeds certain thresholds, providing the potential for increased revenue. It is important to note that Harris Texas Reservation of Overriding Royalty Interest is subject to various legal considerations, including the specific language used in lease agreements and applicable state and local regulations. Consulting an experienced attorney specializing in oil and gas law is crucial for properly navigating and understanding the complexities associated with this type of reservation.The Harris Texas Reservation of Overriding Royalty Interest is a legal concept that primarily pertains to oil and gas leases in the state of Texas. In this context, "Harris" refers to Harris County, which is a major county in Texas known for its significant oil and gas production. An overriding royalty interest (ORRIS) refers to a specific percentage of the gross production from a lease that is reserved for the benefit of a third party, separate from the lessor. A Harris Texas Reservation of Overriding Royalty Interest can be created when a mineral interest owner or lessee grants a percentage of their royalty interest to another party in addition to the primary lessor. This reservation can provide significant benefits to the overriding royalty interest holder, such as a share in the revenue generated from the production and sale of oil and gas resources. There are various types of Harris Texas Reservation of Overriding Royalty Interest, including: 1. Production Overriding Royalty Interest: This type of ORRIS entitles the holder to a percentage of the total production from a lease. The overriding royalty interest is typically carved out of the lessee's total working interest. 2. Lease-Based Overriding Royalty Interest: In some cases, an overriding royalty interest may be tied to a specific lease rather than the entirety of the lessee's working interest. This means that the ORRIS only applies to a particular lease and is not applicable to other leases held by the same lessee. 3. Time-Limited Overriding Royalty Interest: This type of ORRIS is in effect for a specific period of time, usually for the duration of the lease or a predetermined timeframe. Once the time limit is reached, the overriding royalty interest expires, and the holder no longer receives the associated benefits. 4. Floating Overriding Royalty Interest: A floating ORRIS is a percentage that adjusts based on the production levels of the lease. The overriding royalty interest holder receives a higher percentage if the lease's production exceeds certain thresholds, providing the potential for increased revenue. It is important to note that Harris Texas Reservation of Overriding Royalty Interest is subject to various legal considerations, including the specific language used in lease agreements and applicable state and local regulations. Consulting an experienced attorney specializing in oil and gas law is crucial for properly navigating and understanding the complexities associated with this type of reservation.
