The form is used when the Assignor transfers, assigns, and conveys to Assignee an overriding royalty interest in the Leases and all of the oil, gas and other minerals produced, saved and marketed from the Lease equal to a pecentage of 8/8 (the Override ).
A Mississippi Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction, is a legal document that details the transfer of a portion of the royalty interest to another party. This assignment allows the overriding royalty interest owner to assign their interest to a different individual or entity, without any reduction in the proportionate share of the royalties. In Mississippi, there are two main types of assignments of overriding royalty interest: with proportionate reduction and without proportionate reduction. The latter type, which is the focus of this description, grants the overriding royalty interest owner the ability to assign their interest to another party without affecting their proportionate share of the royalties. This means that the assignee will receive a portion of the royalty interest, while the assignor's interest remains unchanged. To execute a Mississippi Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction, several key components need to be included. Firstly, the document should clearly identify the parties involved: the overriding royalty interest owner assigning their interest (the assignor) and the individual or entity receiving the assigned interest (the assignee). Additionally, the document should outline the specific details of the overriding royalty interest being assigned. This includes the legal description of the property or properties for which the royalty interest applies, as well as the exact amount or percentage of the overriding royalty being transferred. It is crucial to provide accurate and comprehensive information to avoid any potential disputes or confusion in the future. Furthermore, the Mississippi Assignment of Overriding Royalty Interest should state the consideration for the assignment, which generally refers to the monetary or non-monetary benefit received by the assignor in exchange for transferring their interest. This consideration can be a one-time payment, ongoing royalties, or other agreed-upon arrangements. To ensure the validity and enforceability of the assignment, it is essential to include clauses that address important factors, such as warranties, representations, and indemnification. These clauses protect both the assignor and assignee by defining their respective rights and responsibilities relating to the assignment. Lastly, the assignment should include provisions for the governing law and jurisdiction, specifying that the document is subject to Mississippi law and any potential disputes will be resolved in Mississippi courts. Overall, a Mississippi Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction, provides a means for overriding royalty interest owners to transfer a portion of their interest to another party without impacting their proportionate share of the royalties. By executing this assignment, both the assignor and assignee can safeguard their interests and ensure a smooth transfer of the overriding royalty interest.
