This form is used when an Assignor transfers, assigns and conveys to Assignee an overriding royalty interest in all of the oil, gas, and other minerals produced, saved, and marketed from all of the Lands and Leases equal to a determined amount (the Override ), reserving the right to pool the assigned interest.
The Missouri Assignment of Overriding Royalty Interest (ORRIS) when Assignor Reserves the Right to Pool the Assigned Interest — Short Form is a legal document that facilitates the transfer of ORRIS while allowing the assignor to retain the right to pool the assigned interest. This article will provide a detailed description of this type of assignment, highlighting its key features and implications. Keywords: Missouri Assignment of Overriding Royalty Interest, assignor, reserves the right to pool, assigned interest, short form. In Missouri, the Assignment of Overriding Royalty Interest is a crucial legal instrument used in oil and gas lease agreements. This contract allows the assignor, the party transferring the ORRIS, to reserve the right to pool the assigned interest. Pooling refers to the practice of combining undivided fractional interests in oil and gas leases into a larger tract or drilling unit, enhancing efficiency and maximizing extraction potential. The Short Form of Missouri Assignment of Overriding Royalty Interest when Assignor Reserves the Right to Pool the Assigned Interest serves as a concise but legally binding statement that records the transfer and reservation of ORRIS. This document is especially useful when parties desire a straightforward agreement without an excessive amount of detailed provisions. There may be different variations or types of Short Form Assignments, depending on the specific requirements and preferences of the involved parties. For example, the assignment could vary based on the terms of overriding royalty interest, the assigned interest's percentage, and specific provisions regarding pooling rights. Each Short Form assignment may have its own particular structure and wording, highlighting the needed flexibility and customization. When drafting the Assignment of Overriding Royalty Interest, both parties should ensure that they accurately describe the assigned interest, including the lease or leases from which it originates, and any specific clauses or conditions pertaining to pooling rights. The document should clearly state the assignor's intent to retain the right to pool the assigned interest, safeguarding their ability to participate in future development opportunities and share in potential revenues. It is crucial to note that the transfer of ORRIS through an Assignment does not grant the assignor the authority to control the operations or decision-making processes related to the assigned interest. The assignee, the party receiving the ORRIS, typically assumes all rights and responsibilities associated with the assigned interest, such as receiving royalty payments and participating in lease-related decisions. In conclusion, the Missouri Assignment of Overriding Royalty Interest when Assignor Reserves the Right to Pool the Assigned Interest — Short Form is a legally binding document that enables the transfer of ORRIS while allowing the assignor to retain the right to pool the assigned interest. This document outlines the parties involved, describes the assigned interest, and ensures the assignor's ongoing participation in potential future development opportunities. By utilizing this short form of assignment, parties involved in oil and gas lease agreements can streamline their contractual obligations while preserving their rights and interests.
