This form is used when an Assignor assigns, transfers, and conveys to Assignee an overriding royalty interest in the Lease and all of the oil and gas produced, saved and marketed from the Lease, out of the interest owned by Assignor, with proportionate reduction (the Override ).
A Minnesota Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is a legal document used in the state of Minnesota to transfer the rights and interests in an overriding royalty interest (ORRIS) from one party to another, while also stipulating a proportionate reduction in the ORRIS. The overriding royalty interest is a non-operating interest in an oil, gas, or mineral lease, which entitles the holder to receive a percentage of the revenue generated from the production of minerals on the leased property. In Minnesota, these interests can be assigned or transferred to another party through a legally binding assignment document. The Minnesota Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction outlines the specific details of the transfer, including the identities of the assigning party (assignor) and the receiving party (assignee). It specifies the legal description of the leased property, including the parcel number and county where it is located. The document also includes provisions for the proportionate reduction in the ORRIS. This reduction ensures that the total ORRIS is not increased but rather redistributed among the assignor and assignee in proportion to their original interests. It prevents any party from receiving a larger ORRIS than what was originally agreed upon in the lease agreement. Different types of Minnesota Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction may vary depending on the specific terms and conditions agreed upon by the parties involved. Some variations may include provisions for the timeframe and method of payment, any additional considerations or compensation, or specific clauses related to confidentiality, indemnification, or dispute resolution. Overall, a Minnesota Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is a crucial legal document that ensures the seamless transfer of ORRIS rights between parties while maintaining a fair distribution of interests. It protects the interests of both the assignor and assignee and helps maintain transparency within the mineral lease agreement.
