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.
A Mississippi Assignment of Overriding Royalty Interest (ORRIS) when the Assignor reserves the right to pool the assigned interest, commonly known as a "short form," is a legal document that allows an individual or entity to transfer their ORRIS rights to another party while still retaining the ability to pool those rights with other assigned interests. This type of assignment is typically used in the oil and gas industry, where pooling allows operators to combine smaller interests into a larger, more economically viable unit. The short form assignment is often utilized when the Assignor wants to maximize the potential value of their ORRIS by participating in a pooled unit, which can increase production and profitability. By reserving the right to pool, the Assignor maintains the flexibility to merge their assigned interest with other working interests to form a cohesive drilling and development plan. Keywords: 1. Mississippi Assignment of Overriding Royalty Interest: This highlights the specific legal document being discussed, which pertains to the transfer of ORRIS rights in Mississippi. 2. Assignor: Refers to the party who currently holds the ORRIS and wishes to assign it to another party. 3. Overriding Royalty Interest: Denotes the interest that an owner maintains in the revenue generated from the production of oil and gas, despite not having an ownership stake in the underlying minerals. 4. Reserves the Right: Emphasizes the Assignor's decision to retain the ability to participate in pooling activities. 5. Pool the Assigned Interest: Describes the act of merging or combining the assigned ORRIS with other working interests within a designated area. 6. Short Form: Indicates that this type of assignment is a concise version of a full assignment agreement and is specific to cases where pooling rights are preserved. Different types of Mississippi Assignment of Overriding Royalty Interest when Assignor Reserves the Right to Pool the Assigned Interest — Short Form may include variations based on specific clauses, terms, or considerations included in the document. Examples might include assignments with provisions for time-limited pooling rights, restrictions on pooling with certain parties, or specific requirements for the Assignor to provide notice or seek approval before pooling their assigned interest.
