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.
Missouri Reservation of Overriding Royalty Interest (MAORI) is a legal concept in the oil and gas industry that grants a landowner the right to retain a specified percentage of the royalty interest for themselves, while leasing or selling the remaining interest to an energy company or operator. It is an agreement commonly used in oil and gas lease contracts in the state of Missouri. The MAORI allows a landowner to reserve a portion of the royalty interest for themselves when entering into an oil and gas lease with a company. This reservation ensures that the landowner continues to receive a share of the profits generated from the extraction of oil and gas on their property, even after leasing the majority of the rights to the operator. By reserving an overriding royalty interest, the landowner receives a percentage of the revenue generated from the oil and gas production, usually free of any expenses incurred in operations. This ensures a continuous stream of income for the landowner, acting as a form of insurance against any changes or fluctuations in the industry. The percentage of the overriding royalty interest can vary depending on the negotiations between the landowner and the operator. Different types of Missouri Reservation of Overriding Royalty Interest exist to provide flexibility and adaptability to the landowner's needs. The two common types are: 1. Fractional MAORI: In this type, the landowner reserves a specific fractional interest in the royalty, such as 1/8th or 1/4th. This ensures a fixed percentage of the revenue generated from the oil and gas production. 2. Top Lease MAORI: A top lease MAORI involves reserving an overriding royalty interest on top of an existing lease. When the existing lease terminates, the top lease MAORI allows the landowner to retain the reserved interest even if they later lease the property to a new operator. Overall, the Missouri Reservation of Overriding Royalty Interest serves as a protective measure for landowners in the state, allowing them to retain a portion of the royalty interest while leasing the remainder to an oil and gas operator. It ensures a steady income for landowners and provides them with a significant stake in the production activities on their property.
