The form is used when the Assignor transfers, assigns, and conveys to Assignee an overriding royalty interest in the Leases and all of the oil, gas and other minerals produced, saved and marketed from the Lease equal to a pecentage of 8/8 (the Override ).
The Kentucky Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction, is a legal document that allows an overriding royalty interest owner in Kentucky to transfer or assign their interest to another party without any reduction in proportionate share. In the oil, gas, and mineral rights industry, an overriding royalty interest (ORRIS) refers to a share of production or revenue that is reserved for the party who does not have a direct ownership interest in the property but may still profit from the extracted resources. These interests are usually created through contractual agreements. The Kentucky Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction, provides a mechanism for an overriding royalty interest owner to transfer their interest to someone else while ensuring that the assigned interest remains intact without any reduction in proportionate share. This means that the assignee receives the exact same percentage or portion of the overriding royalty interest as the assignor, maintaining their rights and benefits from the production or revenue generated. It is important to note that this type of assignment typically occurs when the overriding royalty interest owner wishes to sell, transfer, or assign their interest to another party. It ensures that the assigned interest remains unaffected by any proportionate reduction, meaning that the new owner receives the same proportion of the future benefits as the original owner. The Kentucky Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction, offers protection and peace of mind for both parties involved in the transfer. The assigning party can confidently transfer their overriding royalty interest, knowing that the assignee will not face any reduction or dilution. On the other hand, the assignee can be assured that they are receiving the exact share of the interest as agreed upon, without any unexpected reductions. Overall, the Kentucky Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction, is a crucial legal document in the oil, gas, and mineral rights industry that facilitates the transfer of overriding royalty interests while ensuring that the assigned interest remains intact without any proportionate reduction or dilution.
