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 Guam assignment of overriding royalty interest for a single lease with a proportionate reduction refers to the transfer of a portion of the rights and benefits associated with an overriding royalty interest in a lease agreement in Guam. This type of assignment may vary based on different factors such as terms, conditions, and parties involved. Here is a detailed description of the Guam Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction: 1. Key Terms and Definitions: — Guam: A U.S. territory located in the Western Pacific Ocean, known for its stunning beaches and military presence. — Assignment: The transfer of rights, benefits, or interests from one party to another. — Overriding Royalty Interest: An interest in the revenues generated from a lease agreement, given to a party other than the lessor or lessee. — Single Lease: A lease agreement for a specific property or resource, typically involving the exploration or production of oil, gas, minerals, or other valuable substances. — Proportionate Reduction: A method of assigning a share or percentage of the overriding royalty interest instead of the entire interest. 2. Guam Assignment of Overriding Royalty Interest: The Guam Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is a legal document that outlines the transfer of a portion of an overriding royalty interest in a single lease agreement in Guam. This assignment involves the proportional reduction of the interest, meaning that only a fraction or percentage of the original interest is transferred. 3. Parties Involved: The assignment typically includes the following parties: — Assignor: The party currently holding the overriding royalty interest and transferring a portion of it. — Assignee: The party acquiring the assigned portion of the overriding royalty interest. — Lessor: The owner of the property or resource being leased. — Lessee: The party leasing the property or resource for exploration or production. 4. Types of Guam Assignment of Overriding Royalty Interest for Single Lease — Proportionate Reduction: Different variations of Guam assignments for overriding royalty interests with a proportionate reduction can exist based on specific circumstances. Some possible types may include: — Partial Assignment: The transfer of a specified percentage or fraction of the overriding royalty interest. — Temporary Assignment: A time-limited assignment of a portion of the overriding royalty interest. — Conditional Assignment: The transfer that is contingent upon certain conditions being met. Permanentnt Assignment: A definitive and irrevocable transfer of a portion of the overriding royalty interest. 5. Importance and Implications: The Guam Assignment of Overriding Royalty Interest for Single Lease — Proportionate Reduction is crucial as it enables the assignor to monetize a portion of their interest while still retaining a stake in the lease agreement. Assignees benefit by gaining a share of the revenue generated without the need for extensive involvement in the exploration or production activities. In conclusion, a Guam Assignment of Overriding Royalty Interest for Single Lease — Proportionate Reduction involves the transfer of a portion of an overriding royalty interest in a single lease agreement in Guam. The assignment can take various forms based on the terms, conditions, and parties involved. This type of assignment allows assignors to monetize their interests while assignees can benefit from the lease's revenue without full involvement.
