This form is used when Assignor transfers, assigns and conveys to Assignee an overriding royalty interest in all of the oil, gas, and other minerals produced, saved, and marketed from all of the Lands and Leases equal to a determined amount (the Override ).
Title: Massachusetts Assignment of Overriding Royalty Interest in Multiple Assignors: A Comprehensive Overview Introduction: Understanding the Various Types of Massachusetts Assignment of Overriding Royalty Interest in Multiple Assignors 1. Massachusetts Assignment of Overriding Royalty Interest Explained: — An assignment of overriding royalty interest (ORRIS) is a legally binding document that allows multiple assignors in Massachusetts to transfer their rights to receive a share of proceeds from oil, gas, or mineral production. ORRISRI is typically assigned to an assignee, often an individual or entity with expertise in hydrocarbon exploration and production, who assumes the responsibilities and benefits of the assignor. 2. Common Types of Massachusetts Assignment of Overriding Royalty Interest in Multiple Assignors: 2.1 Conveyance of Fractional ORRIS: — This type of assignment involves multiple assignors who each own a fractional ORRIS and collectively transfer their interests to one or more assignees. — FractionaOrrisIs usually refer to a percentage or fractional share of the total ORRIS, allowing assignees to receive proportional revenues from production. — Assignors often execute a single document, specifying each party's respective fractional interest and the assignee's obligations. 2.2 Pooling of ORRIS Interests: — In cases where multiple assignors hold separate ORRIS interests within the same oil, gas, or mineral lease, they may choose to combine their interests and assign them collectively to a single assignee. — The poolinMorrisRI interests streamlines administrative procedures and ensures a unified approach in managing the interests of all assignors. — Assignors typically enter into a pooling agreement, outlining their shared responsibilities and the assignee's role in managing the pooled ORRIS interests. 2.3 Division Order Assignments: — A division order assignment occurs when assignors collectively assign their interests to an assignee for the purpose of receiving distribution payments. — Division orders serve as instructions to the producer, detailing the proportionate share of production revenue to be allocated to each assignor. — This type of assignment ensures efficient payment distribution to multiple assignors, eliminating the need for individual payment arrangements. 3. Key Elements of a Massachusetts Assignment of Overriding Royalty Interest in Multiple Assignors: 3.1 Assignor Identification: — All assignors involved in the assignment are identified, providing their names, contact details, and legal representation if applicable. 3.2 Assignee Information: — The assignee's name, address, and relevant contact details are specified, enabling effective communication between assignors and assignees. 3.3 Description of ORRIS Interests: — The assignment document should include an accurate description of the ORRIS interests being transferred, specifying the percentage or fractional share assigned by each assignor. 3.4 Consideration: — The consideration, which can be a financial payment or other agreed-upon arrangements, exchanged between the assignors and assignees, is documented in the assignment contract. 3.5 Governing Law and Jurisdiction: — Assignors and assignees may specify Massachusetts as the governing law for the assignment, ensuring clarity and agreement on legal procedures and potential disputes. Conclusion: Efficiently Navigating the Massachusetts Assignment of Overriding Royalty Interest in Multiple Assignors When entering into an assignment of overriding royalty interest in Massachusetts with multiple assignors, it is crucial to understand the specific type of assignment, such as fractional ORRIS conveyance, pooling of ORRIS interests, or division order assignments. By carefully considering key elements and documenting the assignment contract, all parties can effectively manage their interests and ensure smooth revenue distribution from oil, gas, or mineral production.
