The form is used when the Assignor transfers, assigns, and conveys to Assignee an overriding royalty interest in the Leases and all of the oil, gas and other minerals produced, saved and marketed from the Lease equal to a pecentage of 8/8 (the Override ).
Title: Understanding Hawaii Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner without Proportionate Reduction Introduction: The Hawaii Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner is an important legal concept that can have significant implications for parties involved in the oil and gas industry. In this article, we will provide a detailed description of what the assignment entails, along with relevant keywords, ensuring clarity and understanding for readers. Keywords: Hawaii assignment, overriding royalty interest, royalty interest owner, proportionate reduction, oil and gas industry. 1. Hawaii Assignment of Overriding Royalty Interest: The Hawaii Assignment of Overriding Royalty Interest refers to the transfer of a portion of the royalty interest in an oil or gas lease. This transfer allows an overriding royalty interest owner to receive a percentage of the revenue generated from the lease without sharing in the costs or liabilities associated with the production. 2. Overriding Royalty Interest Owner: The Overriding Royalty Interest Owner in Hawaii refers to the entity or individual who possesses a fractional share of the revenue interest in an oil or gas lease. This owner is entitled to receive a certain percentage of the revenue generated from the lease without participating in the costs or risks incurred in the extraction and production processes. 3. No Proportionate Reduction: The term "No Proportionate Reduction" indicates that the assignment of overriding royalty interest does not involve a reduction in the proportionate share of revenue received by the overriding royalty interest owner. This means that the assigned portion of the revenue remains intact, without any reduction due to additional interests or changes in the lease ownership structure. Types of Hawaii Assignments with No Proportionate Reduction: While there is no specific categorization for Hawaii Assignment of Overriding Royalty Interest without Proportionate Reduction, various scenarios may warrant utilizing this type of assignment. Some instances where this assignment type is applicable include: a) Sale of Overriding Royalty Interest: An overriding royalty interest owner may decide to sell a portion of their interest to another party without reducing the proportionate share of revenue they receive. This type of assignment allows the original owner to retain their initial share, whereas the buyer gains a new interest. b) Lease or Contractual Agreement: In some cases, a lease or contractual agreement may involve a provision allowing the assignment of overriding royalty interest to an additional party. This can occur without reducing the original owner's proportionate share, ensuring the assigned interest stands separate and independent. Conclusion: Understanding the Hawaii Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner without Proportionate Reduction is crucial for individuals and entities operating in the oil and gas industry in Hawaii. By comprehending the implications of this assignment, parties can make informed decisions regarding the transfer of royalty interests, ensuring fair and transparent transactions.
