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 Delaware Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is a legal document that outlines the transfer of a portion of the benefits and financial interests associated with an overriding royalty interest (ORRIS) on a single lease in Delaware. This type of assignment allows the assignee to gain a proportional share of the revenue generated from the lease according to the percentage specified in the agreement. Keywords: Delaware, Assignment, Overriding Royalty Interest, Single Lease, Proportionate Reduction. When it comes to Delaware Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction, there are different types based on the specifics of the agreement and the parties involved. Here are a few common variations: 1. Partial Assignment: In this type, the assignor transfers only a portion of their overriding royalty interest to the assignee. The assignor retains ownership of the remaining interest and continues to receive the proportional revenue associated with it. 2. Temporary Assignment: This type involves a time-limited transfer of overriding royalty interest. The assignor grants the assignee the right to receive a proportionate share of the revenue for a specific period, after which the interest reverts to the assignor. 3. Permanent Assignment: Unlike a temporary assignment, a permanent assignment of overriding royalty interest involves a complete and permanent transfer of the assignor's interest to the assignee. The assignee becomes the new owner of the proportionate interest and receives the associated revenue indefinitely. 4. Limited Assignment: In certain cases, an assignor may limit the assignment of their overriding royalty interest. This type of assignment enables the assignee to receive a proportionate reduction of the revenue, but restricts them from further assigning or transferring the interest to another party. Regardless of the specific type, a Delaware Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is an important legal tool that allows parties to share the benefits and financial burdens associated with oil, gas, or mineral leases. It ensures a fair distribution of revenue and preserves the rights and obligations of all parties involved.
