This form is used when an Assignor transfers, assigns and conveys to Assignee an overriding royalty interest in all of the oil, gas, and other minerals produced, saved, and marketed from all of the Lands and Leases equal to a determined amount (the Override ), reserving the right to pool the assigned interest.
The Alabama Assignment of Overriding Royalty Interest when Assignor Reserves the Right to Pool the Assigned Interest — Short Form is a legal document that outlines the transfer of a party's overriding royalty interest (ORRIS) in oil, gas, and mineral leases in Alabama. This type of assignment occurs when the assignor reserves the right to pool or combine the assigned royalty interest with other interests in exploration and production purposes. Keywords: Alabama, Assignment, Overriding Royalty Interest, Assignor, Reserves, Right, Pool, Assigned Interest, Short Form, Oil, Gas, Mineral Leases. The following are different types or aspects related to the Alabama Assignment of Overriding Royalty Interest when the Assignor Reserves the Right to Pool the Assigned Interest: 1. Alabama Assignment of Overriding Royalty Interest: This refers to the document that facilitates the transfer of an ORRIS in Alabama. It establishes the legal ownership and rights of the assignee over the assigned interest. 2. Overriding Royalty Interest (ORRIS): An ORRIS grants the holder a percentage of the revenue derived from the production of oil, gas, or minerals on a specific lease. It is considered an interest that "overrides" the typical royalty interest held by the lessor. 3. Assignor: The assignor is the party currently holding the ORRIS and opting to transfer or assign it to another party. They may be an individual, a company, or an entity with ownership rights to the overriding royalty interest. 4. Reserves the Right: This phrase emphasizes that the assignor retains a specific right or privilege even after the assignment. In this case, the assignor reserves the right to pool the assigned interest, meaning they can combine it with other interests for joint exploration and production activities. 5. Pooling: Pooling, also known as unitization, refers to the combining or consolidation of multiple oil, gas, or mineral interests within a defined geographic area. It allows for efficient exploration and production activities by sharing costs, resources, and risks among the participants. 6. Assigned Interest: The assigned interest refers to the specific ORRIS being transferred from the assignor to the assignee. It is the portion of the overriding royalty interest that the assignor chooses to transfer under the agreement. 7. Short Form: The "short form" indicates that the Alabama Assignment of Overriding Royalty Interest document is a condensed version or summary of detailed contractual agreements. It typically contains essential provisions while avoiding excessive details. In summary, the Alabama Assignment of Overriding Royalty Interest when Assignor Reserves the Right to Pool the Assigned Interest — Short Form is a legally binding document that allows for the transfer of an overriding royalty interest while the assignor retains the right to pool or combine these interests. This type of assignment facilitates efficient exploration and production activities, promoting collaborative efforts within the oil, gas, and mineral industry.
