Illinois Assignment of Overriding Royalty Interest For A Term of Years is a legal agreement that transfers the rights to receive a portion of the royalty income from oil and gas production in the state of Illinois to another party. This document is commonly used in the energy industry to assign the interest in the royalties for a specific period of time. Keywords: Illinois, assignment, overriding royalty interest, term of years, legal agreement, royalty income, oil and gas production, energy industry. There are various types of Illinois Assignment of Overriding Royalty Interest For A Term of Years, which include: 1. Fixed-Term Assignment: This type of assignment grants the overriding royalty interest for a predetermined period, usually specified in years. The assignee receives the allotted portion of royalties during this specific timeframe. 2. Perpetual Assignment: In this type, the overriding royalty interest is assigned indefinitely without any specific time limit. The assignee continues to receive the agreed-upon portion of royalties until the assignment is terminated or modified. 3. Partial Assignment: This variant involves assigning only a portion of the overriding royalty interest rather than the entire interest. This allows the assignor to retain some rights to the royalty income. 4. Diversionary Assignment: A diversionary assignment involves transferring the overriding royalty interest for a term of years, after which the interest reverts to the assignor or another designated party. 5. Non-exclusive Assignment: This type of assignment permits the assignor to make similar agreements with other parties, granting overriding royalty interests to multiple assignees. 6. Exclusive Assignment: An exclusive assignment grants the assignee sole rights to the overriding royalty interest, prohibiting the assignor from entering into similar agreements with other parties during the assigned term of years. It is important to consult with legal professionals experienced in Illinois energy law when drafting or entering into an Illinois Assignment of Overriding Royalty Interest For A Term of Years to ensure compliance with state-specific regulations and to protect the interests of all parties involved.
Illinois Assignment of Overriding Royalty Interest For A Term of Years
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How to fill out Assignment Of Overriding Royalty Interest For A Term Of Years?
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Overriding Royalty Interest: A given interest severed out of the record title interest or lessee's share of the oil, and not charged with any of the cost or expense of developing or operation. The interest provides no control over the operations of the lease, only revenue from lease production.
Overriding Royalty Interest Conveyance means an assignment, in form and substance acceptable to Lender, pursuant to which Borrower grants in favor of Lender an overriding royalty interest equal to six and one-fourth percent (6.25%) of Hydrocarbons produced, saved and sold or used off the premises of the relevant Lease, ...
ORRIs are created out of the working interest in a property and do not affect mineral owners. An overriding royalty interest (ORRI) is often kept or assigned to a geologist, landman, brokerage, or any entity that was able to reserve an interest in the properties.
How to calculate the overriding royalty interest? ORRI = NRI * 5 percent. $750,000 * 0.005 = $3,750.
If at any time Assignee desires to transfer or dispose of all or any portion of the Overriding Royalty Interest, Assignee must first give to Assignor written notice thereof stating: (a) the amount of the Overriding Royalty Interest offered by Assignee; (b) the form of consideration (which shall be either cash or a ...
Overriding Royalty Interest Example The mineral estate can be severed from the surface, beginning two separate chains of title. The mineral owner has the right to explore and develop the minerals, but the vast majority do not have the finances or knowledge to drill and operate a well.
An overriding royalty interest (ORRI) is an interest carved out of a working interest. It is: A percentage of gross production that is not charged with any expenses of exploring, developing, producing, and operating a well.
