This form is used when, as a result of continuous production from the Lease and Lands, payout, as defined in an Assignment, has occurred, and Declarant is entitled to elect to convert the Override to a Working Interest, as provided for in the Assignment.
The Maine Declaration of Election to Convert Overriding Royalty Interest to Working Interest is a legal document that allows individuals or entities to convert their overriding royalty interest in a property to a working interest. In the oil and gas industry, an overriding royalty interest (ORRIS) is a percentage of production or revenue that is received by the interest holder, typically without any liability for the expenses involved in the operation. On the other hand, a working interest (WI) grants the interest holder the right to actively participate in the exploration, production, and operation of the property, but also requires them to bear a proportionate share of the costs. When an individual or entity decides to convert their overriding royalty interest into a working interest, they must file a Maine Declaration of Election to Convert Overriding Royalty Interest to Working Interest with the relevant authorities. This declaration outlines the intention to relinquish the ORRIS and become a working interest owner. There might be variations of the Maine Declaration of Election to Convert Overriding Royalty Interest to Working Interest depending on specific circumstances or jurisdictions. Some potential types or variations include: 1. Individual Declaration: This type of declaration is filled out and submitted by an individual interest holder who wants to convert their ORRIS to a WI. It includes all the necessary personal information, details of the property, and the percentage of WI desired. 2. Company Declaration: In cases where a company or corporate entity holds an ORRIS and wishes to convert it to a WI, they would complete and submit the Company Declaration. This type of document also includes relevant company information, property details, and desired WI percentage. 3. Joint Declaration: If multiple interest holders jointly hold an ORRIS and decide to convert it to a WI, they can file a Joint Declaration. This document outlines the names, addresses, and ownership percentages of each joint interest holder, along with the specifics of the property and the intended conversion. It is essential to ensure compliance with local laws and regulations when filling out and submitting the Maine Declaration of Election to Convert Overriding Royalty Interest to Working Interest. Consulting with legal professionals or industry experts can help navigate the process effectively.
