This form is used when an Assignor was granted the right to receive, at payout, a certain reversionary working interest in the Lease. Payout has not occurred, and Assignor is vested with beneficial ownership of the Interest in the Leases and Lands. The purpose of this Assignment and the intention of Assignor is to assign to Assignee, the Interest.
The Kentucky Assignment of a Diversionary Working Interest is a legal document that transfers the rights and ownership of a working interest in an oil or gas well in the state of Kentucky. This assignment typically occurs when the original owner or holder of the working interest wishes to transfer their rights to another party. A diversionary working interest refers to the share of the working interest that will revert to the original owner after a certain event or period of time. This could be triggered by the depletion of a predetermined amount of reserves, the expiration of a lease, or any other agreed-upon criteria. The Kentucky Assignment of a Diversionary Working Interest is an important instrument for anyone involved in the oil and gas industry in Kentucky. It allows the transfer of valuable working interests, enabling the buyer to take control of the operations, responsibilities, and benefits associated with the assigned working interest. There are several types of Kentucky Assignment of a Diversionary Working Interest, each with its own specific purpose and conditions. These types include: 1. Assignment of a Diversionary Working Interest for Depletion: This type of assignment is triggered when a predetermined amount of reserves is depleted or produced from the well. This allows the original owner to regain the working interest after the agreed-upon threshold is reached. 2. Assignment of a Diversionary Working Interest for Lease Expiration: In this type, the diversionary working interest reverts to the original owner once the lease term expires. This ensures that the original owner retains rights to the working interest when the lease agreement with the current operator comes to an end. 3. Assignment of a Diversionary Working Interest for Default: If a party fails to fulfill their obligations, such as payment or performance, the diversionary working interest can be assigned to another party. This type of assignment safeguards the interests of the original owner when the other party defaults on their responsibilities. 4. Assignment of a Diversionary Working Interest for Specified Time: This type of assignment allows the original owner to regain the working interest after a specific period of time has elapsed. This can be beneficial if the owner expects future changes in market conditions or if they simply wish to control the working interest again after a certain timeframe. Kentucky's Assignment of a Diversionary Working Interest is a crucial legal process that enables the transfer of rights and ownership in an oil or gas well. It provides flexibility and control to the original owner while allowing other parties to benefit from operating and producing oil and gas resources in the state.
