This form is used when an Assignor transfers, assigns, and conveys to Assignee an overriding royalty interest in the Leases and all oil, gas, and other minerals produced, saved, and marketed from the Lands and Leases equal to a percentage of 8/8 (the Override ).
Title: Understanding Hawaii Assignment of Overriding Royalty Interest for Multiple Leases with No Proportionate Reduction — Long Form Introduction: The Hawaii Assignment of Overriding Royalty Interest for Multiple Leases with No Proportionate Reduction — Long Form is a legal document commonly used in the state of Hawaii to transfer or assign overriding royalty interests (ORI's) among multiple leases while ensuring no proportionate reductions are made. This detailed description aims to provide a comprehensive overview of this specific type of assignment in Hawaii and its various distinctions. 1. Hawaii Assignment of Overriding Royalty Interest Explained: The Hawaii Assignment of Overriding Royalty Interest refers to the legal mechanism by which ownership rights to a portion of the royalties from mineral leases or other natural resource leases are transferred from one party to another. The long form indicates a more comprehensive agreement, encompassing multiple leases. 2. Purpose and Importance of No Proportionate Reduction: The inclusion of "No Proportionate Reduction" in this assignment is crucial as it ensures that the assigning party maintains the same percentage interest in the royalty payments across all leases involved. This provision prevents any dilution of ownership and guarantees the assignee's entitlement to a consistent portion of future proceeds. 3. Key Components within the Long Form Assignment: a. Detailed parties' information: Identifying the assigning party (assignor) and the recipient party (assignee), providing their legal names, addresses, contact details, and party representations. b. Description of the leases: Listing all relevant leases subject to the assignment, including lease identification numbers, effective dates, locations, lessor information, and any special provisions. c. Overriding Royalty Interest Assignment: Clearly stating the assignor's intention to transfer a specific percentage or fraction of the overriding royalty interest across the mentioned leases to the assignee. d. No Proportionate Reduction Clause: Including a provision that explicitly specifies that no proportionate reduction shall occur in the assignor's interest across all leases, regardless of the revenue generated by each lease. e. Consideration and payment terms: Outlining any financial or non-financial considerations accompanying the assignment, such as payment terms, nominal consideration, or special arrangements. f. Covenants and representations: Enumerating the covenants made by both parties, including representations of ownership, authority to transact, and non-conflicting agreements. g. Execution and governing law: Finalizing the assignment with the signatures of both parties, along with the governing law under which the agreement will be interpreted and enforced. 4. Distinctions in Types of Hawaii Assignment of Overriding Royalty Interest for Multiple Leases with No Proportionate Reduction — Long Form: Although the primary purpose of these assignments remains consistent, variations may arise depending on factors like industry-specific requirements, lease type (mineral, natural resources, etc.), or specific circumstances outlined in the agreement. a. Oil and Gas Leases: Hawaii Assignment of Overriding Royalty Interest for Multiple Oil and Gas Leases with No Proportionate Reduction — Long Form would specifically address the transfer of royalty interests concerning oil and gas leases, considering the unique practices and regulations specific to this sector. b. Renewable Energy Leases: In cases where the involved leases pertain to renewable energy resources like wind, solar, or geothermal, a customized version called Hawaii Assignment of Overriding Royalty Interest for Multiple Renewable Energy Leases with No Proportionate Reduction — Long Form would be used to cover the particularities of these leases. Conclusion: The Hawaii Assignment of Overriding Royalty Interest for Multiple Leases with No Proportionate Reduction — Long Form is a comprehensive legal instrument facilitating the transfer of overriding royalty interests while maintaining the assignor's percentage interest across multiple leases. This detailed description provides an overview of its purpose, key components, and potential variations within specific lease types.
