This form is used when an Assignor was granted the right to receive, at payout, a certain reversionary working interest in the Lease. Payout has not occurred, and Assignor is vested with beneficial ownership of the Interest in the Leases and Lands. The purpose of this Assignment and the intention of Assignor is to assign to Assignee, the Interest.
Alaska Assignment of A Diversionary Working Interest is a legal contract that involves the transfer of a diversionary working interest in oil and gas leases located in the state of Alaska. This agreement allows the assignor (the party transferring the interest) to convey their ownership and future rights to the assignee (the recipient of the interest). A diversionary working interest refers to the share of oil and gas production rights that reverts to the assignor after a certain period or condition is met. In Alaska, this type of assignment is commonly used in the oil and gas industry to facilitate the transfer of working interests. There are several types of Alaska Assignment of A Diversionary Working Interest, including: 1. Primary Term Diversionary Working Interest Assignment: This type of assignment involves the transfer of the working interest once the primary term of the lease expires. The assignor retains the diversionary interest until the primary term is completed. 2. Production Diversionary Working Interest Assignment: In this type of assignment, the transfer of the working interest occurs when the assigned well starts producing oil or gas. The assignor retains the diversionary working interest until production is achieved. 3. Cumulative Production Diversionary Working Interest Assignment: This assignment involves the transfer of the working interest after a specific cumulative production threshold is reached. The assignor retains the diversionary working interest until the assigned well or wells collectively produce a certain amount of oil or gas. 4. Time-limited Diversionary Working Interest Assignment: This type of assignment involves the transfer of the working interest for a specific period. The assignor has the right to reclaim the diversionary interest after the designated timeframe lapses. It is important for both parties involved in an Alaska Assignment of A Diversionary Working Interest to carefully review and negotiate the terms of the agreement. The contract should include details such as the effective date of the assignment, the size of the working interest being transferred, any conditions for reversion, and responsibilities regarding lease obligations, royalties, and expenses. In summary, an Alaska Assignment of A Diversionary Working Interest is a legal contract used to transfer ownership and future rights to a working interest in oil and gas leases located in Alaska. Various types of assignments exist, such as primary term, production, cumulative production, and time-limited assignments, each with specific conditions for reversion.
