The Arizona Assignment of Overriding Royalty Interest Limited as to Depth is a legal agreement that grants the assignment of a limited portion of a royalty interest in Arizona mineral rights, specifically defined by its depth limitations. This type of assignment is commonly used in the oil and gas industry, where multiple parties may hold various interests in a particular mineral lease or property. An overriding royalty interest (ORRIS) represents the right to receive a portion of the revenue generated from the production of minerals, such as oil, gas, or minerals, from a specific lease or property. The assignment of ORRIS limited as to depth allows the assignee to only receive royalty payments for the minerals extracted from a particular depth range. The Arizona Assignment of Overriding Royalty Interest Limited as to Depth serves as a legal contract that outlines the specific terms and conditions of the assignment. It typically includes details such as the effective date, the parties involved (assignor and assignee), a clear description of the property or lease, and the depth limitations of the ORRIS. By defining the depth limitations, the Arizona Assignment of Overriding Royalty Interest Limited as to Depth ensures that the assignee's interest only applies to the minerals extracted from a specified depth range. This allows for a more precise division of royalty interests and eliminates potential disputes or confusion. Different types of Arizona Assignment of Overriding Royalty Interest Limited as to Depth may include specific depth restrictions, such as limitations to a particular geological formation or target reservoir. For instance, an assignment might limit the ORRIS to minerals extracted from a depth range of 5,000 to 6,000 feet within a specific oilfield or lease. This type of assignment provides flexibility for the parties involved, allowing them to allocate royalty interests more efficiently based on specific geological factors, production characteristics, and market conditions. It safeguards the assignor's retained royalty interests in other depth ranges or allows them to assign separate ORRIS interests to different parties. In conclusion, the Arizona Assignment of Overriding Royalty Interest Limited as to Depth is a valuable legal instrument that enables the precise allocation of royalty interests within the oil and gas industry. By specifying depth limitations, this assignment ensures a clear demarcation of interests and streamlines royalty distribution based on the depth range of the extracted minerals.
Arizona Assignment of Overriding Royalty Interest Limited As to Depth
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An overriding royalty interest (ORRI) is an interest carved out of a working interest. It is: A percentage of gross production that is not charged with any expenses of exploring, developing, producing, and operating a well.
Overriding Royalty Interest Conveyance means an assignment, in form and substance acceptable to Lender, pursuant to which Borrower grants in favor of Lender an overriding royalty interest equal to six and one-fourth percent (6.25%) of Hydrocarbons produced, saved and sold or used off the premises of the relevant Lease, ...
Overriding Royalty Interests To calculate the ORRI, multiply the gross production revenue by the ORRI interest percentage, and the figure gotten is what the ORRI owner is entitled to. How to Calculate Oil and Gas Royalty Payments? - Pheasant Energy pheasantenergy.com ? how-to-calculate-oil-... pheasantenergy.com ? how-to-calculate-oil-...
There are three main types of royalty interests: Overriding royalty interest: Unlike mineral and royalty interests, an overriding royalty interest runs with a lease and not with the land. Therefore, they only remain in effect for as long as a lease is in effect and they expire when a lease expires.
To calculate the number of net royalty acres I'm selling, I use this formula: [acres in tract] X [% of minerals owned] X 8 X [royalty interest reserved in lease] X [fraction of royalty interest being sold]. 640 acres X 25% X 8 X 1/4 X 1/2 = 160 net royalty acres. Net Royalty Acres Defined - Oil and Gas Lawyer Blog oilandgaslawyerblog.com ? net-royalty-acre... oilandgaslawyerblog.com ? net-royalty-acre...
Overriding Royalty Interest: A given interest severed out of the record title interest or lessee's share of the oil, and not charged with any of the cost or expense of developing or operation. The interest provides no control over the operations of the lease, only revenue from lease production.
What Determines the Value of an Overriding Royalty Interest? Mineral interest location. One in a shale basin with high production is worth more. Producing oil and gas wells. Wells currently producing are valued more. ... Production reserves and levels. ... Prices.
You may convey overriding royalty interest on either an Assignment of Record Title Interest (Form 3000-3), a Transfer of Operating Rights (Form 3000-3a), or on a private assignment. We only require filing of one signed copy per assignment plus a nonrefundable filing fee found at 43 CFR 3000.12. Information and Procedures for Transferring Overriding Royalty ... blm.gov ? article ? Information-and-Procedu... blm.gov ? article ? Information-and-Procedu...
