This form is used when an Assignor transfers, assigns, and conveys to Assignee an overriding royalty interest in the Leases and all oil, gas, and other minerals produced, saved, and marketed from the Lands and Leases equal to a percentage of 8/8 (the Override ).
Title: Understanding Arizona Assignment of Overriding Royalty Interest for Multiple Leases with No Proportionate Reduction — Long Form 1. Introduction to Arizona Assignment of Overriding Royalty Interest: The Arizona Assignment of Overriding Royalty Interest is a legal document used in the state of Arizona to transfer the rights and interests of a royalty owner to another party. This document is crucial for individuals or entities involved in mineral exploration, extraction, and production activities. 2. Importance of Overriding Royalty Interests: Overriding Royalty Interests (ORI's) grant individuals or entities the right to receive a specified percentage of the revenue from minerals extracted from a leased property. ORI's provide a unique investment opportunity for individuals aiming to participate in the oil and gas industry without directly bearing the costs and risks associated with exploration and drilling. 3. Overview of Multiple Leases with No Proportionate Reduction: The Arizona Assignment of Overriding Royalty Interest for Multiple Leases with No Proportionate Reduction refers to a specific type of assignment whereby the assignee (new party) acquires ORI's from multiple leases without any reduction in the assigned percentage interest. This type of assignment is especially beneficial for parties looking to diversify their portfolio and expand their investment in various properties. 4. Elements and Clauses Covered in the Long Form Assignment: a. Parties Involved: The document will identify and specify the rights and responsibilities of both the assigning party and the assignee, including their legal names, contact details, and addresses. b. Property Details: The pertinent details of the properties subject to the assignment, including lease numbers, legal descriptions, and locations, will be outlined. c. Assignment of Rights: The assignment document will explicitly state the percentage ORI that is being transferred from the assigning party to the assignee for each lease. d. No Proportionate Reduction Clause: This clause ensures that the assigned percentage interest for each lease remains intact, meaning that the assignee will receive the same percentage of royalty without any reduction. e. Assignment Consideration: The financial and non-financial considerations, such as the lump-sum payment, working interest, or other arrangements, will be mentioned. f. Effective Date and Term: The document will specify the effective date and term of the assignment, outlining the duration of assignment and any renewal or termination conditions. g. Governing Law: The governing law provision will detail that the assignment will be governed by the laws of Arizona, ensuring legal compliance in the state. 5. Types of Arizona Assignment of Overriding Royalty Interests in Multiple Leases with No Proportionate Reduction: While the "Long Form" assignment is the general term used for this type of assignment, specific variations may exist, such as different assignments for oil vs. gas leases, or assignment documents tailored for specific companies or regions within Arizona. These variations can include additional clauses and information relevant to the specific circumstances. In conclusion, the Arizona Assignment of Overriding Royalty Interest for Multiple Leases with No Proportionate Reduction — Long Form is a legal document that facilitates the transfer of royalty interests from one party to another while maintaining the assigned percentages intact. Understanding this document is crucial for individuals or entities involved in the energy sector seeking to participate in mineral exploration and production activities within Arizona.
