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 ).
Maine Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction Overview: The Maine Assignment of Overriding Royalty Interest (ORRIS) by the Overriding Royalty Interest (ORI) Owner, with No Proportionate Reduction, is a legal transaction in the oil and gas industry that involves the transfer of ownership rights of ORRIS in a property located in Maine. This assignment has specific features and variations, which will be explored in detail below. Keywords: Maine, Assignment, Overriding Royalty Interest, Overriding Royalty Interest Owner, No Proportionate Reduction, oil and gas industry, property. 1. Definition of Overriding Royalty Interest (ORRIS): An ORRIS is a type of royalty interest in an oil and gas lease that grants the owner a specific percentage or proportionate share of the revenues from the lease, but without any liability for the costs of production. 2. Purpose of Maine Assignment of Overriding Royalty Interest: The assignment allows the current ORI owner to transfer their rights, title, and interests in the ORRIS to a new owner, who will assume all the rights and benefits associated with the ORRIS. 3. Importance of No Proportionate Reduction: The clause "No Proportionate Reduction" ensures that the assigned ORRIS proportion remains intact even if there are subsequent changes in the working interest ownership or the overall royalty burden on the property. 4. Types of Maine Assignment of Overriding Royalty Interest: a. Absolute Assignment: This type involves a complete transfer of ORRIS ownership rights from the ORI owner to the assignee, with no retention of any interests or participation in future benefits. b. Partial Assignment: In this case, the ORI owner transfers only a certain portion or percentage of their ORRIS ownership rights to the assignee while retaining the remaining interest. 5. Legal Considerations: The Maine Assignment of Overriding Royalty Interest typically requires a written agreement between the ORI owner and the assignee, which outlines the following key aspects: — Clear identification of the ORI being assigned, including the property, specific ORRIS percentage, and any related lease or agreement details. — Accurate representation of the ORI owner's title and rights to assign the ORRIS. — The exact percentage or proportion being transferred to the assignee. — Necessary representations, warranties, and indemnifications to protect the assignee from any potential claims or disputes. — Consideration or financial compensation for the transfer of ORRIS ownership. Conclusion: The Maine Assignment of Overriding Royalty Interest in the Overriding Royalty Interest Owner, No Proportionate Reduction, allows for the transfer of ORRIS rights in a property located in Maine. This legal transaction is crucial for ORI owners looking to divest their interests or for investors seeking to acquire ORRIS and benefit from future revenue streams in the oil and gas industry.
