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 Louisiana Assignment of a Diversionary Working Interest is a legal agreement that involves the transfer of a diversionary working interest in an oil and gas lease in the state of Louisiana. This arrangement allows an assignor, who is the current owner of the working interest, to assign or transfer their interest to an assignee. The diversionary working interest refers to the ownership stake in an oil and gas lease that reverts to the assignor or their heirs at a future predetermined date or event. This means that after a specific period of time or when certain conditions are met, the working interest will be returned to the assignor, allowing them to regain full control and ownership of the lease. There are different types of Louisiana Assignment of a Diversionary Working Interest, depending on the specific terms and conditions agreed upon by the assignor and assignee. These types may include: 1. Time-based Reversion: The working interest reverts to the assignor after a set number of years. This type of assignment allows the assignor to regain full ownership of the working interest after a specified timeframe, regardless of the status of the lease. 2. Production-based Reversion: The working interest reverts to the assignor when a certain level of production or a specific amount of revenue is reached. This type of assignment ensures that the assignor will regain control of the working interest once the lease starts generating a predefined level of earnings or output. 3. Event-based Reversion: The working interest reverts to the assignor upon the occurrence of a particular event. This event could include the completion of specific drilling operations, the expiration of a related agreement, or the fulfillment of specific contractual obligations. The Louisiana Assignment of a Diversionary Working Interest is an essential tool in the oil and gas industry, allowing parties to transfer ownership interests while ensuring rights of reversion. It provides a mechanism for assignors to maintain an interest in their lease while granting assignees the opportunity to benefit from the oil and gas production during a specified period.
