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 ).
A Michigan Assignment of Overriding Royalty Interest is a legal document that transfers the ownership of an overriding royalty interest (ORRIS) in relation to oil and gas leases or mineral rights in the state of Michigan. This assignment involves the overriding royalty interest owner (assignor) giving up their rights to receive a portion of the revenue generated from the production of oil, gas, or minerals to a new party (assignee). The Assignment of Overriding Royalty Interest in Michigan can be classified into two types: 1. With Proportionate Reduction: This type of assignment includes a provision that allows for a proportionate reduction in the interest of the overriding royalty interest owner if the total interest in the property changes due to additional leases or assignments. This means that if new leases or assignments are added, all overriding royalty interest owners will have their interest reduced proportionately based on the overall interest in the property. 2. Without Proportionate Reduction: This type of assignment does not include a provision for a reduction in the interest of the overriding royalty interest owner. Therefore, the assignor retains the same fixed percentage interest in the revenue generated from the production of oil, gas, or minerals, regardless of any changes in the total interest in the property. It is important to note that the rights and obligations associated with the Assignment of Overriding Royalty Interest in Michigan are governed by the terms and conditions specified within the assignment agreement. These terms typically include details regarding the assignment's effective date, the assignor's representation that they hold the right to assign the ORRIS, the assignee's acceptance of the assignment, and any additional provisions agreed upon by both parties. In conclusion, a Michigan Assignment of Overriding Royalty Interest involves the transfer of ownership of an ORRIS related to oil and gas leases or mineral rights. The assignment can be categorized as either with or without proportionate reduction, depending on whether the assignor's interest will be reduced proportionately in the event of additional leases or assignments. It is essential for parties involved to carefully review and understand the terms outlined in the assignment agreement before executing the transfer of the ORRIS.
