This form is used when an Assignor was granted the right to receive, at payout, a certain reversionary working interest in the Lease. Payout has not occurred, and Assignor is vested with beneficial ownership of the Interest in the Leases and Lands. The purpose of this Assignment and the intention of Assignor is to assign to Assignee, the Interest.
A Mississippi Assignment of a Diversionary Working Interest refers to a legally binding agreement wherein the holder of a working interest in an oil and gas lease assigns their interest to another party, which will come into effect upon a specified event or condition. This type of assignment is commonly used in the oil and gas industry to transfer ownership of a working interest. In Mississippi, there are different types of Assignment of a Diversionary Working Interest. One such type is the Nonparticipating Royalty Interest (NPR) Assignment. This occurs when the holder of a nonparticipating royalty interest assigns their interest to another party. A nonparticipating royalty interest is a share of production or revenue from oil and gas operations without the right to partake in the lease's operations. Another type is the Overriding Royalty Interest (ORRIS) Assignment. In this case, the holder of an overriding royalty interest assigns their interest to another party. An overriding royalty interest is a share of production or revenue carved out of the lessee's working interest and does not entitle the holder to bear any cost or risk associated with the lease. Furthermore, there are Assignment of a Diversionary Working Interest agreements with varying conditions and triggers. For instance, some assignments may take effect upon the expiration of a certain period, termination of a lease, or the occurrence of specific events such as the drilling of a well or reaching certain production levels. These assignments are crucial for managing ownership and revenue interests in oil and gas leases in Mississippi. They allow holders to transfer their working interests, nonparticipating royalty interests, or overriding royalty interests to other parties who may have more resources, expertise, or strategic objectives aligned with the lease's development. In summary, a Mississippi Assignment of a Diversionary Working Interest is a legal agreement that transfers ownership of a working, nonparticipating royalty, or overriding royalty interest in an oil and gas lease. The different types of assignments include Nonparticipating Royalty Interest (NPR) Assignment and Overriding Royalty Interest (ORRIS) Assignment. These assignments can have various triggers and conditions, playing a vital role in managing ownership and revenue interests in Mississippi's oil and gas industry.
