This provision provides for the assignor to except from this assignment and reserve an overriding royalty interest of all oil, gas, casinghead gas, and other minerals that may be produced from the lands under the terms of the Leases that are the subject of this assignment.
Michigan Reservation of Overriding Royalty Interest, also known as the Michigan Royalty Interest Reservation, is a legal term referring to a particular type of mineral rights ownership in the state of Michigan, United States. This reservation grants the holder an overriding royalty interest (ORRIS) in oil, gas, or other mineral production from a specific property. Keywords: Michigan Reservation of Overriding Royalty Interest, mineral rights ownership, Michigan Royalty Interest Reservation, overriding royalty interest, oil, gas, mineral production. There are two different types of Michigan Reservation of Overriding Royalty Interest: 1. Statutory Michigan Reservation: This type of reservation is created pursuant to Section 235 of the Michigan Sustainable Forest Resources Act (SARA). It allows property owners who lease or sell their mineral rights to retain a certain percentage of the royalties derived from the production of oil, gas, or minerals extracted from their property. This statutory reservation provides a legal framework for property owners to secure their share of the royalties without interfering with the overall rights of the lessee or purchaser. 2. Contractual Michigan Reservation: This type of reservation is voluntarily created by agreement between the owner of the mineral rights and the party seeking to lease or purchase those rights. The language and terms of the reservation are negotiated and included in the contractual agreement. This reservation ensures that the owner of the mineral rights retains a fixed or percentage-based overriding royalty interest. It offers flexibility for both parties to determine the specific terms of the reservation, such as the duration, percentage, or specific minerals subject to the reservation. In summary, the Michigan Reservation of Overriding Royalty Interest allows property owners in Michigan to retain a percentage of royalties derived from oil, gas, or mineral production. It can be created either through statutory provisions or contractual agreements, providing a legal framework to protect the interests of both the mineral rights owners and lessees or purchasers.
