The form is used when the Assignor transfers, assigns, and conveys to Assignee an overriding royalty interest in the Leases and all of the oil, gas and other minerals produced, saved and marketed from the Lease equal to a pecentage of 8/8 (the Override ).
The Alabama Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction, is a legal document that enables the transfer of overriding royalty interests in oil and gas leases located in Alabama, without any reduction in the proportionate share of the royalty interest. An overriding royalty interest (ORRIS) is a non-operating interest in a property that entitles the interest owner to a specified percentage of the revenue generated from the production of oil and gas. Typically, the ORRIS is created when a lease is assigned or conveyed and provides the ORRIS owner with a right to receive a portion of the royalty stream generated from the lease. In the state of Alabama, the Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction, is commonly used to transfer ORRIS rights between parties involved in oil and gas production. This type of assignment ensures that the owner of the ORRIS maintains their entitled percentage share of the royalty, without any reduction caused by subsequent assignments or conveyances. The Alabama Assignment of Overriding Royalty Interest is a crucial document that protects the rights of ORRIS owners and provides them with the assurance that their portion of the royalty will not be diminished as a result of future transfers. This document is essential for ORRIS owners looking to sell or convey their interests, as it ensures the preservation of their proportionate share. It is important to note that there may be different variations or types of Assignment of Overriding Royalty Interest in Alabama, but the "No Proportionate Reduction" provision importantly distinguishes this particular type, setting it apart from assignments that may allow for a proportionate reduction upon subsequent transfers. In conclusion, the Alabama Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction, is a legal document used in the transfer of ORRIS rights in oil and gas leases within the state. By using this type of assignment, ORRIS owners can rest assured that their proportionate share of the royalty will not be reduced with future assignments or conveyances.
