This form is used by the Owner to provide notice that the overriding royalty interests which are owned by Owners are to be merged into, combined with, and a part of Owners working interest, and the net revenue interest in production Owner is entitled to in all oil and gas produced from the Lands and Leases.
Keywords: Mississippi, Notice of Merger, Working Royalty Interests, Overriding Royalty Interests A Mississippi Notice of Merger of Working and Overriding Royalty Interests is a legal notification that informs stakeholders and interested parties about the combination or consolidation of two or more working and overriding royalty interests in Mississippi. This notice signifies a change in the ownership structure or the division of royalties in an oil and gas property. Working Royalty Interests refer to the share of production revenue granted to the owner or operator of a mineral lease or working interest. These individuals or entities, often referred to as working interest owners, are responsible for paying a portion of the costs associated with drilling, producing, and operating the well. Upon successful extraction, they are entitled to receive a percentage of the production proceeds. Overriding Royalty Interests, on the other hand, are non-operating interests in an oil and gas property that are created out of the working interest. This type of interest entitles the overriding royalty owner to receive a portion of the production revenue, typically free of any associated costs or responsibilities. In the state of Mississippi, Notice of Merger of Working and Overriding Royalty Interests can apply to various specific situations. These may include: 1. Merger of Multiple Working and Overriding Royalty Interests: This type of notice is filed when two or more working and overriding royalty interests are combined into a single interest. The purpose may be to streamline operations, facilitate joint ventures, or consolidate ownership rights. 2. Consolidation of Overriding Royalty Interests: This notice is relevant when multiple overriding royalty interests in a particular property are consolidated into one comprehensive interest. This consolidation can simplify the distribution of royalties and administrative processes related to the property. 3. Transfer of Working and Overriding Royalty Interests: This notice is required when there is a transfer or assignment of working and overriding royalty interests from one party to another. The notice provides transparency and alerts all relevant stakeholders about the change in ownership and division of royalties. 4. Pooling or Unitization of Interests: In some cases, multiple working and overriding royalty interests are combined to create a pooled or unitized interest. This occurs when multiple mineral leases or working interests are aggregated into larger units to enhance efficiency and maximize production potential. The Notice of Merger is filed to report the creation or modification of such pooling or unitization agreements. It is crucial to adhere to the specific filing requirements and timelines stated by Mississippi's governing authorities when submitting a Notice of Merger of Working and Overriding Royalty Interests. This notice ensures that all concerned parties are duly informed about the changes in ownership and accommodate any necessary adjustments in royalty distribution.
