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 ).
An Arkansas Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner is a legal transaction that involves the transfer of certain rights and interests in an oil and gas property located in Arkansas. This document establishes the transfer of an overriding royalty interest (ORI) by the current owner to another party, without any proportionate reduction. The overriding royalty interest owner is the individual or entity that holds the ORI, which grants them the right to receive a percentage or share of the gross production from the oil and gas property. This interest is separate from the ownership of the actual mineral rights or the working interest in the property. In an Arkansas Assignment of Overriding Royalty Interest, the overriding royalty interest owner assigns or transfers their ORI to another party. This transfer can occur for a variety of reasons, including financial considerations, estate planning, or strategic realignment of assets. One type of Arkansas Assignment of Overriding Royalty Interest is where the ORI owner assigns the interest to a third-party entity or individual who may be interested in investing in oil and gas properties. This assignment allows the assigning party to monetize their ORI and potentially receive a lump sum payment in exchange for the future revenue stream associated with the ORI. Another type of assignment is when an overriding royalty interest owner assigns their interest to another entity within their own portfolio of oil and gas assets. This may occur when the owner wishes to consolidate their holdings, streamline administrative processes, or comply with internal restructuring requirements. It is worth noting that in an Arkansas Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction is specified. This means that the assigned ORI represents the same percentage or share of the gross production as the original ORI, without any change or reduction. This provision ensures that the assignee receives the same benefits and rights as the original overriding royalty interest owner. Overall, an Arkansas Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction is a legal instrument that allows for the transfer of an ORI in an oil and gas property without any reduction in the assigned interest. This transaction can serve various purposes, including financial arrangements and internal portfolio management.
