This form is used when an Assignor was granted the right to receive, at payout, a certain reversionary working interest in the Lease. Payout has not occurred, and Assignor is vested with beneficial ownership of the Interest in the Leases and Lands. The purpose of this Assignment and the intention of Assignor is to assign to Assignee, the Interest.
Delaware Assignment of A Diversionary Working Interest is a legal document that transfers the rights of a diversionary working interest in an oil and gas lease located in Delaware. This type of assignment is commonly used in the energy industry to transfer ownership of working interests held by a party to another party. A working interest refers to the ownership interest that grants the holder the right to actively participate in the exploration, development, and production of oil and gas resources. A diversionary working interest specifically pertains to the interest that reverts to the assignor after a certain condition or event is fulfilled. It commonly occurs when a lease is temporarily assigned to another party, but reverts to the original owner once specific requirements are met. The Delaware Assignment of A Diversionary Working Interest document outlines the terms and conditions of the transfer, including the parties involved, the details of the original oil and gas lease, the description of the diversionary working interest being assigned, and any conditions or restrictions associated with the assignment. This document serves as evidence of the ownership transfer, protecting the rights and interests of both parties involved. There are different types of Delaware Assignment of A Diversionary Working Interest based on the specific conditions and events triggering the reversion. Some common types include: 1. Time-Based Reversion: This type of assignment sets a specific time period for the temporary transfer of the working interest. Once the assigned time period expires, the interest reverts to the assignor. 2. Activity-Based Reversion: In this type, the assignment is contingent upon certain activities being undertaken, such as drilling a certain number of wells or reaching a predetermined production level. If the assigned party fails to meet these requirements within the specified timeframe, the interest reverts to the assignor. 3. Event-Based Reversion: This type of assignment is triggered by a specific event, such as the expiration of another lease, the bankruptcy of the assignee, or the non-payment of proceeds. Once the event occurs, the interest automatically reverts to the original owner. It is important for both parties involved in a Delaware Assignment of A Diversionary Working Interest to carefully review and understand the terms of the assignment to ensure that their rights and obligations are properly defined and protected. Consulting with legal professionals experienced in energy and oil and gas transactions is advisable to navigate the complexities of this type of assignment effectively.
