This form is used when an Assignor assigns, transfers, and conveys to Assignee an overriding royalty interest in the Lease and all of the oil and gas produced, saved and marketed from the Lease, out of the interest owned by Assignor, with proportionate reduction (the Override ).
The Arkansas Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is a legal document that involves the transfer of the overriding royalty interest from one party to another in the context of a single lease agreement in Arkansas. This assignment allows for the sharing of royalty interests proportionally among multiple parties. When it comes to different types of Arkansas Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction, they may include variations based on specific conditions or purposes. Some potential types are: 1. Voluntary Assignment: This type of assignment occurs when the transfer of overriding royalty interest is done willingly and with the agreement of both the assignor (party transferring the interest) and the assignee (party receiving the interest). 2. Involuntary Assignment: In certain cases, the assignment of overriding royalty interest may be done involuntarily, typically due to legal action or court orders. This type of assignment usually arises from disputes, bankruptcies, or foreclosures. 3. Partial Assignment: With a partial assignment, only a portion of the overriding royalty interest is transferred to the assignee, while the assignor retains the remaining interest. This type of assignment allows for the sharing of royalty benefits without giving up complete ownership. 4. Permanent Assignment: In a permanent assignment, the overriding royalty interest is transferred permanently from the assignor to the assignee. The assignor relinquishes all rights and benefits associated with the interest, and the assignee becomes the exclusive recipient of the royalty payments. 5. Temporary Assignment: Alternatively, a temporary assignment of overriding royalty interest may take place for a fixed period. This type of assignment allows the assignee to receive the royalty payments for a specified duration, after which the interest reverts to the assignor. When engaging in the Arkansas Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction, it is crucial to include specific provisions such as the agreement's effective dates, the identities of the assignor and assignee, the percentage or proportion of interest being assigned, and any conditions or terms governing the assignment. Overall, the Arkansas Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction serves as a legally binding instrument that facilitates the transfer and sharing of royalty interests in a fair and proportionate manner among multiple parties involved in a single lease agreement in Arkansas.
