This provision provides for the assignor to except from this assignment and reserve an overriding royalty interest of all oil, gas, casinghead gas, and other minerals that may be produced from the lands under the terms of the Leases that are the subject of this assignment.
Georgia Reservation of Overriding Royalty Interest, often referred to as the Georgia Override, is a legal concept that grants certain rights to mineral interest owners in the state of Georgia, United States. This reservation allows the holder to retain a portion of the royalties generated from the extraction of minerals, even after selling or leasing the underlying mineral rights. An overriding royalty interest is created when a mineral interest owner chooses to reserve a portion of the royalties generated from a lease or sale of the mineral rights. This reservation is often granted to the current owner or a designated entity, allowing them to receive a predetermined percentage of the total production revenues. In Georgia, there are two primary types of the Reservation of Overriding Royalty Interest: 1. Fractional Overriding Royalty Interest: Under this type, the mineral interest owner reserves a specific fraction or percentage of the royalties generated. For example, an owner may reserve a 1/8 overriding royalty interest, entitling them to receive one-eighth (12.5%) of the total production revenues. 2. Fixed Overriding Royalty Interest: In this type, the mineral interest owner reserves a fixed or specific amount of the royalties generated. The fixed overriding royalty interest is typically expressed in dollars per unit of production. For instance, an owner may reserve $5 per barrel of oil produced, guaranteeing a fixed amount per unit irrespective of the total production or the prevailing market conditions. The Georgia Override can be negotiated and included in mineral lease agreements or conveyed through deeds and assignments. It is crucial for both mineral interest owners and potential lessees to thoroughly understand the terms, conditions, and implications of this reservation when entering into agreements involving mineral rights in Georgia. By exercising the Reservation of Overriding Royalty Interest, mineral interest owners in Georgia can maintain an ongoing stake in the profits derived from mineral extraction on their property, regardless of the sale or lease of the underlying mineral rights. This provides them with a long-term financial interest in the production activities and ensures a continued revenue stream from the mineral resources on their land.
