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.
Phoenix Arizona Reservation of Overriding Royalty Interest (LORI) is a legal term used in the field of oil and gas exploration and production. It refers to a specific type of contractual arrangement where a landowner or lessor retains a share or percentage of royalty interest in the revenue generated from the extraction and production of oil, gas, or other minerals on their property. LORI can be seen as a form of financial compensation or stakeholder interest for the landowner, providing ongoing benefits from the exploitation of natural resources on their property. In Phoenix, Arizona, where the oil and gas industry is relatively limited compared to other states, LORI agreements are prevalent in the few areas with active exploration and production activities. There are different types of Phoenix Arizona Reservation of Overriding Royalty Interest, including: 1. Non-Participating Royalty Interest (NPR): Under this type of LORI, the landowner retains a percentage of royalty interest but does not have any direct participation in the operations or decision-making process of the extraction or production activities. The landowner simply receives a regular payment based on the agreed percentage of revenue. 2. Convertible Overriding Royalty Interest (CORI): This type of LORI allows the landowner to convert their royalty interest into an overriding royalty interest at any time during the production phase. By converting the interest, the landowner gains a higher percentage of royalty on the production revenue and may become more actively involved in the operations or decisions. 3. Working Interest (WI) with Overriding Royalty Interest (ORRIS): This combination involves the landowner or lessor having both a working interest and an overriding royalty interest. As a working interest owner, they bear a share of the costs and risks associated with exploration and production activities. Simultaneously, they also receive a percentage of royalty interest as an override on other working interest owners' share of production revenue. Phoenix Arizona Reservation of Overriding Royalty Interest is typically outlined in lease agreements and can vary depending on the negotiations between the landowner and the oil and gas company. It is crucial for landowners to seek legal counsel to understand the specific terms and implications of any LORI agreement before entering into such contracts.Phoenix Arizona Reservation of Overriding Royalty Interest (LORI) is a legal term used in the field of oil and gas exploration and production. It refers to a specific type of contractual arrangement where a landowner or lessor retains a share or percentage of royalty interest in the revenue generated from the extraction and production of oil, gas, or other minerals on their property. LORI can be seen as a form of financial compensation or stakeholder interest for the landowner, providing ongoing benefits from the exploitation of natural resources on their property. In Phoenix, Arizona, where the oil and gas industry is relatively limited compared to other states, LORI agreements are prevalent in the few areas with active exploration and production activities. There are different types of Phoenix Arizona Reservation of Overriding Royalty Interest, including: 1. Non-Participating Royalty Interest (NPR): Under this type of LORI, the landowner retains a percentage of royalty interest but does not have any direct participation in the operations or decision-making process of the extraction or production activities. The landowner simply receives a regular payment based on the agreed percentage of revenue. 2. Convertible Overriding Royalty Interest (CORI): This type of LORI allows the landowner to convert their royalty interest into an overriding royalty interest at any time during the production phase. By converting the interest, the landowner gains a higher percentage of royalty on the production revenue and may become more actively involved in the operations or decisions. 3. Working Interest (WI) with Overriding Royalty Interest (ORRIS): This combination involves the landowner or lessor having both a working interest and an overriding royalty interest. As a working interest owner, they bear a share of the costs and risks associated with exploration and production activities. Simultaneously, they also receive a percentage of royalty interest as an override on other working interest owners' share of production revenue. Phoenix Arizona Reservation of Overriding Royalty Interest is typically outlined in lease agreements and can vary depending on the negotiations between the landowner and the oil and gas company. It is crucial for landowners to seek legal counsel to understand the specific terms and implications of any LORI agreement before entering into such contracts.
