The Michigan Assignment of Overriding Royalty Interests (ORRIS) is a legal agreement that allows for the transfer of a specific percentage of the assignor's net revenue interest after deducting certain costs, effectively creating a net profit arrangement. Keywords: Michigan Assignment, Overriding Royalty Interests, Percentage, Assignor's Net Revenue Interest, Deductions, Certain Costs, Net Profits. In Michigan, there are several types of Assignment of Overriding Royalty Interests of a Percentage of Assignor's Net Revenue Interest, After Deductions of Certain Costs — Effectively A Net Profits arrangements. Some include: 1. Michigan Oil and Gas Assignment of Overriding Royalty Interests: This type of assignment is commonly used in the oil and gas industry of Michigan. It allows the assignor to transfer a specified percentage of their net revenue interest from oil and gas production after deducting certain allowable costs. 2. Michigan Mining Assignment of Overriding Royalty Interests: In the mining sector of Michigan, this assignment enables the assignor to convey a portion of their net revenue interest from mineral extraction operations. The assigned party will then receive a predetermined percentage of the profits generated after the deduction of certain allowable expenses. 3. Michigan Renewable Energy Assignment of Overriding Royalty Interests: With the growing emphasis on renewable energy sources such as solar or wind power in Michigan, this assignment type pertains to the transfer of a percentage of net revenue interest from renewable energy projects. The assignor deducts specific costs associated with the project before paying the assigned party their share of the net profits. 4. Michigan Real Estate Assignment of Overriding Royalty Interests: This assignment is related to the transfer of net revenue interest derived from real estate projects, such as rental properties or developments. The assignor deducts eligible expenses, including maintenance costs or property taxes, before allocating a percentage of the net profits to the assigned party. Overall, the Michigan Assignment of Overriding Royalty Interests of a Percentage of Assignor's Net Revenue Interest, After Deductions of Certain Costs — Effectively A Net Profits is a versatile legal instrument utilized in various industries across the state. It allows for the transfer of a specified percentage of net revenue interest while considering applicable deductions, ultimately facilitating the sharing of net profits between the assignor and assigned party.
Michigan Assignment of Overriding Royalty Interests of a Percentage of Assignor's Net Revenue Interest, After Deductions of Certain Costs - Effectively A Net Profits
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An overriding royalty interest (ORRI) is similar to a royalty interest in that it is also a portion of the proceeds from the sale of production. However, it is not retained under the terms of the oil and gas lease. An ORRI is granted, assigned and created under the terms of a separate document.
How to calculate the overriding royalty interest? ORRI = NRI * 5 percent. $750,000 * 0.005 = $3,750.
To calculate the number of net royalty acres I'm selling, I use this formula: [acres in tract] X [% of minerals owned] X 8 X [royalty interest reserved in lease] X [fraction of royalty interest being sold]. 640 acres X 25% X 8 X 1/4 X 1/2 = 160 net royalty acres.
Overriding Royalty Interest: A given interest severed out of the record title interest or lessee's share of the oil, and not charged with any of the cost or expense of developing or operation. The interest provides no control over the operations of the lease, only revenue from lease production.
Overriding Royalty Interest Conveyance means an assignment, in form and substance acceptable to Lender, pursuant to which Borrower grants in favor of Lender an overriding royalty interest equal to six and one-fourth percent (6.25%) of Hydrocarbons produced, saved and sold or used off the premises of the relevant Lease, ...
An overriding royalty interest (ORRI) is an interest carved out of a working interest. It is: A percentage of gross production that is not charged with any expenses of exploring, developing, producing, and operating a well.
ORRIs are created out of the working interest in a property and do not affect mineral owners. An overriding royalty interest (ORRI) is often kept or assigned to a geologist, landman, brokerage, or any entity that was able to reserve an interest in the properties.
You may convey overriding royalty interest on either an Assignment of Record Title Interest (Form 3000-3), a Transfer of Operating Rights (Form 3000-3a), or on a private assignment. We only require filing of one signed copy per assignment plus a nonrefundable filing fee found at 43 CFR 3000.12.