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 Arizona Assignment of Overriding Royalty Interest in an Overriding Royalty Interest Owner, with no proportionate reduction, is a legal document that transfers the rights of an overriding royalty interest (ORRIS) from the owner to another party. This type of assignment is commonly used in the oil and gas industry where Orris is prevalent. In Arizona, Orris are interested in the proceeds or production from oil and gas leases, typically granted to someone other than the mineral rights' owner. The ORRIS owner is entitled to a specified percentage of the proceeds or production, which is separate from the royalty interest held by the mineral rights' owner. When an ORRIS owner wants to transfer their interest to someone else, they can use an Arizona Assignment of Overriding Royalty Interest. This document outlines the details of the transfer, including the names of the parties involved, the percentage of the ORRIS being assigned, and any additional terms or conditions. The assignment can be structured in various ways, depending on the specific circumstances and agreements between the parties. However, the "No Proportionate Reduction" clause ensures that the assigned ORRIS does not result in a reduction of the percentage ownership of the remaining ORRIS interests held by the assigning party. For example, if an ORRIS owner holds a 5% interest in a particular oil and gas lease, and they assign 2% of their interest to another party, the remaining ORRIS interest of the assigning party would still be 3% after the assignment. This clause safeguards the assigning party's ownership stake in the ORRIS. It's important to note that there may be different types or variations of Arizona Assignment of Overriding Royalty Interest, depending on specific circumstances or contractual agreements. Some assignments may include proportionate reductions to ensure equal distribution among the ORRIS owners, while others may have restrictions on the assignment or additional considerations. In summary, an Arizona Assignment of Overriding Royalty Interest in an Overriding Royalty Interest Owner, with no proportionate reduction, is a legal document used to transfer an ORRIS from one party to another in the state of Arizona. The assignment ensures that the assigning party's ownership interest in the ORRIS is not diminished as a result of the transfer.
