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 Mississippi Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is a legal document that allows an owner of an overriding royalty interest (ORRIS) in a single lease in Mississippi to assign a portion of their interest to another party. This type of assignment is specifically used when the owner wants to proportionately reduce their ORRIS in the lease. Keywords: 1. Mississippi: Refers to the state in which the lease is located, highlighting the jurisdiction of the assignment. 2. Assignment: Indicates the act of transferring ownership or rights from one party to another. 3. Overriding Royalty Interest (ORRIS): Represents an interest in the revenue generated from a lease, typically a percentage, which is separate from the lessee's mineral interest. 4. Single Lease: Refers to a specific lease agreement that covers the exploration, development, and production of minerals, typically oil and gas, in a specific area. 5. Proportionate Reduction: Indicates the method of reducing the ORRIS in a lease by a certain proportion, allowing for a more manageable interest for the assignor. Types of Mississippi Assignment of Overriding Royalty Interest for Single Lease — Proportionate Reduction: 1. PartiaORRISRI Assignment: In this type, the assignor transfers only a portion of their ORRIS to another party, proportionately reducing their interest while retaining some ownership. 2. Temporary Reduction Assignment: This category involves assigning a proportionate reduction of ORRIS for a specific time period, after which the assignor's interest reverts to its original state. 3. Permanent ORRIS Reduction Assignment: In this type, the assignor permanently reduces their ORRIS in the lease by a proportionate amount, relinquishing that portion of their interest indefinitely. 4. Non-Participating ORRIS Assignment: This category involves assigning a proportionate reduction of an ORRIS in a lease while maintaining a non-participating status, meaning the assignor does not have the right to participate in the lease operations or decision-making. 5. Multi-Layered ORRIS Assignment: This type encompasses a situation where the assignor assigns a proportionate reduction of their ORRIS in multiple layers within a single lease, dividing their interest across different depths or zones. It is important to consult with legal professionals or experts in Mississippi law to ensure the proper drafting and execution of the Assignment of Overriding Royalty Interest for Single Lease — Proportionate Reduction, as specific requirements or provisions may vary.
