Kansas Assignment of Overriding Royalty Interest with Proportionate Reduction is a legal document used to transfer the rights to an overriding royalty interest (ORRIS) in Kansas, with the provision of a proportionate reduction in case of future assignments. An ORRIS is a share of the proceeds from an oil and gas lease that is separate from the working interest, typically granted to a party who does not directly participate in the exploration or production activities. In Kansas, there are two main types of Assignment of Overriding Royalty Interest with Proportionate Reduction commonly used: 1. Absolute Assignment of Overriding Royalty Interest: This type of assignment involves the transfer of the entire ORRIS from the assignor (current owner) to the assignee (new owner) without any reservation or conditions. The document clearly outlines the assignment details, including the percentage of ORRIS being transferred, the legal description of the underlying lease or well, and any specific terms agreed upon between the parties. Additionally, it explicitly states the assignee's rights, responsibilities, and obligations pertaining to the acquired ORRIS. 2. Partial Assignment of Overriding Royalty Interest: In this form of assignment, only a portion of the assignor's ORRIS is transferred to the assignee. The assignor retains a certain percentage of the ORRIS while assigning the remaining to the assignee. The proportionate reduction clause is particularly pertinent in this type of assignment, as it ensures that the assignor's retained ORRIS is proportionally reduced if any subsequent assignments of the ORRIS occur in the future. This provision maintains the fair distribution of royalties among all parties involved throughout the life of the lease or well. Keywords: Kansas, Assignment of Overriding Royalty Interest, Proportionate Reduction, legal document, overriding royalty interest, ORRIS, oil and gas lease, working interest, absolute assignment, partial assignment, assignor, assignee, legal description, fair distribution, royalties.
Kansas Assignment of Overriding Royalty Interest with Proportionate Reduction
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How to fill out Kansas Assignment Of Overriding Royalty Interest With Proportionate Reduction?
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There are three main types of royalty interests: Overriding royalty interest: Unlike mineral and royalty interests, an overriding royalty interest runs with a lease and not with the land. Therefore, they only remain in effect for as long as a lease is in effect and they expire when a lease expires.
Overriding royalty interest: Unlike mineral and royalty interests, an overriding royalty interest runs with a lease and not with the land. Therefore, they only remain in effect for as long as a lease is in effect and they expire when a lease expires.
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 ...
What Determines the Value of an Overriding Royalty Interest? Mineral interest location. One in a shale basin with high production is worth more. Producing oil and gas wells. Wells currently producing are valued more. ... Production reserves and levels. ... Prices.
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, ...
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.
