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.
The Kansas Assignment of Production Payment by Lessee to Third Party is a legal document that allows the lessee (the person or entity leasing the rights to produce oil, gas, or minerals) to transfer their right to receive payment from the production to a third party. This assignment is commonly used in the energy industry to provide flexibility in managing production payments and financial obligations. The primary purpose of the Kansas Assignment of Production Payment by Lessee to Third Party is to give the lessee the ability to assign their right to receive payment in exchange for monetary consideration or other benefits. This assignment can be beneficial for lessees looking to reallocate their financial resources, manage risk, or secure additional funding for their operations. There are different types of Kansas Assignment of Production Payment by Lessee to Third Party, each serving specific needs and circumstances. Some common types include: 1. Absolute Assignment: In this type of assignment, the lessee transfers all rights, title, and interest in the production payment to the third party. The third party becomes the new owner of the payment and has the right to receive it directly from the production. 2. Partial Assignment: This assignment allows the lessee to assign only a portion of the production payment to the third party. The lessee retains ownership of the remaining portion while the assigned portion goes to the third party. 3. Revocable Assignment: A revocable assignment provides the lessee with the flexibility to revoke or cancel the assignment at any time. This type of assignment is often used when the lessee wants to temporarily transfer the payment rights but may need to reclaim them in the future. 4. Irrevocable Assignment: Unlike the revocable assignment, an irrevocable assignment cannot be canceled or revoked by the lessee. Once the assignment is made, the third party has a permanent right to receive the assigned production payment. 5. Conditional Assignment: A conditional assignment is subject to certain conditions or events. The transfer of payment rights to the third party depends on the occurrence or non-occurrence of these specified conditions. When executing a Kansas Assignment of Production Payment by Lessee to Third Party, it is crucial to consult with legal professionals specializing in energy law or contracts to ensure compliance with Kansas state laws and to protect the rights and interests of all parties involved.
