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 Michigan Declaration of Election to Convert Overriding Royalty Interest to Working Interest is a legal document that allows individuals or parties with an overriding royalty interest in an oil and gas lease to convert that interest into a working interest. This provides them with a direct ownership stake and the ability to actively operate and participate in the production and development of the lease. Keywords: Michigan, Declaration of Election, Convert, Overriding Royalty Interest, Working Interest, oil and gas lease, ownership stake, production, development. Different types of Michigan Declarations of Election to Convert Overriding Royalty Interest to Working Interest may include: 1. Individual Conversion: This type allows an individual with an overriding royalty interest to convert it into a working interest on their own. 2. Joint Conversion: This type permits multiple individuals or parties with overriding royalty interests to convert collectively into a single working interest. 3. Partial Conversion: This form of declaration enables the conversion of only a portion of the overriding royalty interest to a working interest, allowing the individual or party to retain some royalty interest while actively participating in operations. 4. Full Conversion: In contrast to partial conversion, this type allows for the complete conversion of an overriding royalty interest into a working interest, providing the individual or party with full ownership rights and operational responsibilities. 5. Temporary Conversion: This category allows for a time-limited conversion of an overriding royalty interest to a working interest, providing the individual or party with the opportunity to actively participate in operations for a specific period. 6. Permanent Conversion: This type of declaration results in a permanent conversion from overriding royalty interest to working interest, creating a long-term ownership stake and operational responsibility. It is important to consult with legal professionals familiar with Michigan law and the specifics of the declaration to ensure accuracy and compliance when preparing or executing it.
