This form is used by the Owner to provide notice that the overriding royalty interests which are owned by Owners are to be merged into, combined with, and a part of Owners working interest, and the net revenue interest in production Owner is entitled to in all oil and gas produced from the Lands and Leases.
Illinois Notice of Merger of Working and Overriding Royalty Interests is a legal document that outlines the consolidation of working and overriding royalty interests within the state of Illinois. This notice serves as an important record of any changes made to the ownership structure of these interests, ensuring transparency and adherence to legal requirements. Working interests refer to the ownership stakes in an oil, gas, or mineral lease that give the owner the right to explore, develop, and extract resources from the specified land. On the other hand, overriding royalty interests are a type of non-operating interest where the owner receives a predetermined percentage of the extracted resources' value as a royalty. When a merger takes place involving these interests, it typically involves the combination or transfer of ownership rights from one entity to another. This transaction may occur due to various reasons, such as consolidation of resources, shifts in ownership structure, or simply for increased operational efficiency. There can be different types of Illinois Notice of Merger of Working and Overriding Royalty Interests, each catering to specific scenarios. These may include: 1. Full Consolidation Notice: This type of notice is used when all working and overriding royalty interests of a particular lease or multiple leases are merged into a single entity. The notice outlines the names of the merging parties, the effective date of the merger, and the percentage distribution of interests among the new entity's partners or shareholders. 2. Partial Merger Notice: In cases where only a portion of the working and overriding royalty interests are merged, a partial merger notice is filed. This notice provides details of the specific interests involved, the merging parties, and the revised ownership structure resulting from the merger. 3. Transfer of Ownership Notice: Sometimes, the merger of working and overriding royalty interests involves a transfer of ownership from one entity to another. In such cases, a specific notice is generated to record this transfer, highlighting the names of the transferor and transferee along with the updated ownership percentages. 4. Notification to Regulatory Authorities: Alongside the primary notice filed with the parties involved, it is necessary to notify the relevant regulatory authorities overseeing oil, gas, and mineral leases within Illinois. This notification ensures compliance with state regulations and allows regulatory bodies to update their records accordingly. By filing an Illinois Notice of Merger of Working and Overriding Royalty Interests, individuals, companies, and organizations can maintain accurate and up-to-date records of their ownership interests in oil, gas, and mineral leases. The notice serves as an essential tool for both commercial and legal purposes, providing transparency and ensuring compliance within the Illinois jurisdiction.
