This form is used when the Assignor transfers, assigns, and conveys to Assignee, as a production payment, a percentage of 8/8 of all oil, gas, and other minerals produced and saved from the Lands under the terms of the Lease and any renewals or extensions of the Lease which are obtained by Assignor or Assignor's successors and/or assigns.
An Illinois Assignment of Production Payment by Lessee to Third Party is a legal document used in the state of Illinois to transfer the rights and benefits of a production payment from a lessee to a third party. This type of assignment allows the lessee to transfer their interest in a production payment to another party. A production payment is a financial arrangement in the oil and gas industry where a lessee (usually an oil and gas company) agrees to pay a royalty or share of the revenue from the production of hydrocarbons to the owner of the production payment. The owner of the production payment, also known as the assignee, is entitled to receive a portion of the revenue generated from the sale of the oil and gas produced from the leased property. An Illinois Assignment of Production Payment by Lessee to Third Party is commonly used in situations where the lessee wants to monetize their production payment or transfer their interest to another party. This can occur when the lessee needs immediate cash or wants to sell their rights to someone else. There are different types of Illinois Assignment of Production Payment by Lessee to Third Party, including outright assignments and partial assignments. — Outright Assignment: This type of assignment involves the complete transfer of the lessee's interest in the production payment to the assignee. The assignee becomes the new owner of the payment and is entitled to receive all future payments from the production of hydrocarbons. — Partial Assignment: In a partial assignment, the lessee transfers only a portion of their interest in the production payment to the assignee. This allows the lessee to retain a percentage of the payments while still monetizing a portion of their interest. The Illinois Assignment of Production Payment by Lessee to Third Party typically includes details such as the names and addresses of the parties involved, the effective date of the assignment, a description of the production payment being assigned, the consideration or price for the assignment, warranties and representations from the parties, and any relevant terms and conditions regarding the assignment. It is important to note that the assignment must comply with Illinois state laws and regulations governing the transfer of production payments. It is recommended to consult with a qualified attorney or legal professional to ensure the assignment is valid and legally binding.
