This form is used when an Assignor assigns, transfers, and conveys to Assignee an overriding royalty interest in the Lease and all of the oil and gas produced, saved and marketed from the Lease, out of the interest owned by Assignor, with proportionate reduction (the Override ).
Nebraska Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is a legal document that allows for the transfer of a specific percentage or portion of the overriding royalty interest (ORRIS) associated with a lease in Nebraska. This document is typically used when an owner of an ORRIS wants to assign or sell a portion of their interest to another party. The overriding royalty interest refers to the percentage of revenue generated from the lease that is granted to the ORRIS owner, typically in addition to the standard royalty paid to the lessor. By assigning a portion of this interest, the assignor is effectively transferring the right to receive a proportionate amount of the revenue derived from the lease to the assignee. There are different types of Nebraska Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction that may be used depending on specific circumstances: 1. Partial Assignment: This type of assignment involves transferring a specified percentage or specific fraction of the ORRIS associated with the lease. The assignor retains ownership of the remaining ORRIS interest, while the assignee gains the right to a proportionate share of the revenue. 2. Pro Rata Assignment: In this type of assignment, the ORRIS owner assigns a proportionate reduction of their overriding royalty interest, based on a specific formula or calculation. This formula is usually determined by the percentage of the interest that the assignee is purchasing. 3. Variable Assignment: This assignment allows for the transfer of a varying or flexible percentage of the ORRIS, which may change depending on certain conditions or milestones specified in the agreement. This type of assignment enables flexibility in the ownership of the ORRIS and can be negotiated between the assignor and the assignee. Nebraska Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is a legally binding document that should be carefully drafted and reviewed by legal professionals. It typically includes details such as the names and addresses of the assignor and assignee, information about the lease and ORRIS, the assigned percentage or fraction, consideration or compensation for the assignment, and any conditions or terms associated with the assignment. Overall, Nebraska Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is an important legal instrument utilized in the oil and gas industry to facilitate the transfer of a specified portion of overriding royalty interests, allowing for more efficient management and distribution of revenue among various stakeholders involved in a lease.
