This form is used when an Assignor assigns, transfers, and conveys to Assignee an overriding royalty interest in the Lease and all of the oil and gas produced, saved and marketed from the Lease, out of the interest owned by Assignor, with proportionate reduction (the Override ).
An Indiana Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction refers to a legal document that allows for the transfer of a portion of the overriding royalty interest (ORRIS) from one party to another in the state of Indiana. This type of assignment typically involves a single lease and involves a proportionate reduction of the ORRIS. An overriding royalty interest, also known as a non-operating interest, represents a share of the revenue generated from the production of oil, gas, or mineral resources. It is separate from the working interest, which entails the costs and responsibilities of drilling, production, and operation. In the context of Indiana, where a single lease is involved, this type of assignment allows for the transfer of a specific portion or percentage of the ORRIS from the assignor (the party transferring the ORRIS) to the assignee (the receiving party). The proportionate reduction aspect means that the assignor's ORRIS will be decreased by the assigned percentage, and the assignee will acquire that same percentage of the ORRIS. Different types of Indiana Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction may include: 1. Partial Assignment: This type of assignment involves transferring a specific portion or percentage of the ORRIS while retaining the remaining percentage. It allows the assignor to retain some interest in the lease while benefiting from the assigned percentage. 2. Full Assignment: In this type of assignment, the assignor completely transfers their entire ORRIS to the assignee. The assignor no longer holds any interest in the lease, and the assignee assumes full ownership of the assigned ORRIS. 3. Fixed Term Assignment: This assignment involves the transfer of the ORRIS for a specified duration. The assignee will possess the assigned ORRIS only for the predetermined period, after which the ORRIS reverts to the assignor. 4. Permanent Assignment: Unlike the fixed term assignment, the permanent assignment involves the transfer of the ORRIS indefinitely. The assignee retains the assigned ORRIS permanently, and no future reversions to the assignor occur. The Indiana Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is crucial for parties involved in the oil, gas, or mineral industry seeking to transfer or acquire interests in leases. It allows for the equitable distribution of income generated from the production, ensuring that both parties benefit from the resources extracted. The specific terms and conditions of the assignment are documented within the agreement, outlining the assigned percentage and any associated rights or obligations. Overall, an Indiana Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is a legal instrument used to transfer a proportionate share of the overriding royalty interest from one party to another within the state of Indiana.
