This form is used when the Assignor wishes to convey, assign and sell to the Assignee an undivided working interest in an oil and gas lease but reserves an overriding royalty interest payable on all oil, gas, and associated hydrocarbons produced, saved and sold from the Lands.
Kentucky Partial Assignment of Oil and Gas Lease for Part of Lands Subject to Nonproducing Lease allows the transfer and assignment of a portion of an existing oil and gas lease that is subject to a non-producing status. This agreement is used when a lessee wants to assign a specific part of their lease to another party while retaining the remaining part. In Kentucky, there are various types of Partial Assignments of Oil and Gas Lease for Part of Lands Subject to Nonproducing Lease, each serving different purposes. These may include: 1. Spatial Assignments: This type of assignment involves transferring a specific geographical area or tract of land within the existing lease to another party. It allows the lessee to retain control and rights over the remaining lands, while the assignee gains the rights to explore and extract oil and gas resources from the assigned area. 2. Depth Assignments: A Depth Assignment allows the transfer of rights to a specified underground depth within the leased lands. This type of assignment is useful when different parties want to focus on exploring and producing oil and gas resources at different depths within the lease. 3. Time Assignments: Time Assignments involve transferring rights to a certain time period within the nonproducing lease. This is often done to expedite exploration and production efforts by assigning specific durations to different parties, allowing them to initiate operations simultaneously or in succession. 4. Formation Assignments: In cases where multiple formations or reservoirs exist within the lease, Formation Assignments can be utilized. This enables the assignment of specific formations or reservoirs to different parties, optimizing exploration and production efforts by targeting particular deposits. The Kentucky Partial Assignment of Oil and Gas Lease for Part of Lands Subject to Nonproducing Lease is a comprehensive legal document that outlines the terms, conditions, and obligations of both the assignor (original lessee) and the assignee (new party). It includes details such as the assigned area, depth, time period, or formation, as well as the consideration paid for the assignment. Additionally, the agreement typically addresses provisions for the lessee's retained rights, liabilities, and the assignee's responsibilities for lease management, operations, and payment of royalties to the original lessor.
