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.
North Carolina Assignment of Overriding Royalty Interest when Assignor Reserves the Right to Pool the Assigned Interest — Short Form The North Carolina Assignment of Overriding Royalty Interest when Assignor Reserves the Right to Pool the Assigned Interest — Short Form is a legal document that outlines the transfer of an overriding royalty interest from the assignor to the assignee while allowing the assignor to retain the right to pool the assigned interest. This type of assignment is commonly used in the oil and gas industry. The assignment of overriding royalty interest refers to the transfer of a portion of the proceeds or profits derived from mineral rights or leases. In North Carolina, this short form of assignment serves as a simplified and streamlined document that facilitates the transfer of the overriding royalty interest. By reserving the right to pool the assigned interest, the assignor maintains the ability to combine or consolidate the assigned interest with other interests, which can be beneficial in the extraction and production of minerals. Pooling allows for more efficient operations, cost-sharing, and increased production rates. Different types or variations of North Carolina Assignment of Overriding Royalty Interest when Assignor Reserves the Right to Pool the Assigned Interest — Short Form may include: 1. Non-Exclusive Assignment: This type of assignment allows the assignor to assign the overriding royalty interest to multiple assignees, granting them fractional interests. It enables assignees to benefit from pooling arrangements while ensuring the assignor retains pooling rights. 2. Limited Pooling Assignment: This variation limits the assignor's ability to pool the assigned interest to designated lands, specific lease agreements, or certain timeframes. It provides flexibility and control to both parties involved. 3. Assignment with Conditions: In some cases, assignors may include conditions or restrictions to the assignment, such as requiring assignees to reach a certain production threshold or meet specific obligations before pooling can occur. This ensures that pooling benefits are only granted under certain circumstances. It is crucial for all parties involved in the North Carolina Assignment of Overriding Royalty Interest when Assignor Reserves the Right to Pool the Assigned Interest — Short Form to consult legal professionals familiar with North Carolina's oil and gas laws. This will help ensure the document accurately reflects the intentions of both parties and complies with all relevant regulations.
