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 ).
A California Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is a legal document that allows the transfer of an overriding royalty interest from one party to another in the context of a single lease in California. This type of assignment is necessary when there is a need to reallocate or reduce the proportionate interest of the overriding royalty. In the state of California, there are several types of Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction, each with its own specific purpose. Some of these types may include the following: 1. Full Assignment: This type of assignment involves the complete transfer of the overriding royalty interest from one party to another. The assigning party gives up their entire interest in the royalty, while the assignee receives full ownership and control over it. 2. Partial Assignment: In this scenario, only a portion of the overriding royalty interest is assigned to another party. The assigning party retains a percentage of the royalty interest, while the assignee receives the remaining percentage. 3. Proportional Transfer: This type of assignment involves the proportional reduction of the overriding royalty interest among multiple assignees. The assigning party may allocate different percentages of the interest to each assignee based on an agreed-upon formula or criteria. 4. Time-based Assignment: In some cases, an overriding royalty interest assignment may be limited to a specific duration or timeframe. This means that the assignee will only hold the royalty interest for a predetermined period, after which it reverts to the assigning party. 5. Terminable Assignment: This type of assignment includes a termination clause that allows the assigning party to reclaim the overriding royalty interest under certain conditions. These conditions may include non-compliance with contractual obligations or the occurrence of specific events. Overall, a California Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is a crucial legal document that facilitates the transfer of an overriding royalty interest while ensuring a fair and proportionate distribution among parties involved.
