This form is used when, as a result of continuous production from the Lease and Lands, payout, as defined in an Assignment, has occurred, and Declarant is entitled to elect to convert the Override to a Working Interest, as provided for in the Assignment.
The North Dakota Declaration of Election to Convert Overriding Royalty Interest to Working Interest is a legal document used in the state of North Dakota to convert an overriding royalty interest (ORRIS) into a working interest (WI) in an oil and gas lease or property. This conversion grants the interest holder additional rights and responsibilities, allowing them to actively participate in the exploration, development, and production of oil and gas reserves. The declaration serves as a formal notice from the interest holder to the operator of the lease or property, expressing the intent to convert the ORRIS to a WI. It outlines the terms and conditions of the conversion, including the percentage of working interest to be acquired, any associated costs, and the effective date of the conversion. Different types of North Dakota Declaration of Election to Convert Overriding Royalty Interest to Working Interest may include: 1. Partial Conversion: This type of declaration involves converting only a portion of the ORRIS into a working interest. The interest holder may choose to retain a certain percentage of the ORRIS while acquiring a working interest in the remaining percentage. 2. Full Conversion: In this case, the interest holder opts to convert the entire overriding royalty interest into a working interest. They willingly relinquish the rights associated with the ORRIS in exchange for the enhanced rights and responsibilities of a working interest. 3. Modified Conversion: This type of declaration allows for certain modifications or special provisions tailored to specific circumstances. It could involve negotiated terms such as reduced or deferred costs, altered working interest percentages, or unique operational agreements. The North Dakota Declaration of Election to Convert Overriding Royalty Interest to Working Interest plays a crucial role in facilitating the conversion process and establishing the legal framework for the newly acquired working interest. It ensures transparency, clarity, and mutual agreement between the interest holder and the operator, optimizing resource development and harnessing the potential benefits associated with working interest ownership.
