This form is used when, as a result of continuous production from the Lease and Lands, payout, as defined in an Assignment, has occurred, and Declarant is entitled to elect to convert the Override to a Working Interest, as provided for in the Assignment.
The Iowa Declaration of Election to Convert Overriding Royalty Interest to Working Interest is a legal document that allows a party in an oil or gas lease to convert their overriding royalty interest (ORRIS) into a working interest. This conversion grants the party a direct ownership in the development and production of minerals rather than just receiving a percentage of the revenue generated. The document outlines the terms and conditions under which the conversion will take place. It typically includes the names and addresses of the parties involved, a description of the leased property, the effective date of the conversion, and any considerations or compensation involved in the process. Keywords: Iowa Declaration of Election, Convert Overriding Royalty Interest, Working Interest, oil and gas lease, ORRIS, direct ownership, minerals, revenue, conversion, terms and conditions, leased property, effective date, considerations, compensation. Different types of Iowa Declarations of Election to Convert Overriding Royalty Interest to Working Interest may include: 1. Partial Conversion: This type of conversion involves converting only a portion of the overriding royalty interest into a working interest. It allows the party to maintain some ORRIS while actively participating in the operations and potential profits generated by the working interest. 2. Complete Conversion: In this type of conversion, the entire overriding royalty interest is converted into a working interest. The party becomes fully responsible for the costs, risks, and liabilities associated with the working interest, but also benefits from the potential rewards. 3. Conditional Conversion: This type of conversion is subject to certain conditions specified in the document. The party may choose to convert their overriding royalty interest to a working interest only under specific circumstances, such as when certain production thresholds or revenue benchmarks are met. 4. Temporary Conversion: This type of conversion allows the party to convert their overriding royalty interest into a working interest for a specific period. After the expiration of the temporary period, the interest may revert to an ORRIS automatically, or through a separate election. It's important to consult with a qualified attorney or legal expert to understand the specific details and implications of the different types of Iowa Declarations of Election to Convert Overriding Royalty Interest to Working Interest, as they may vary depending on individual circumstances, lease agreements, and local regulations.
