Nebraska Assignment of Partial Interest in Oil and Gas Lease Reserving an Overriding Royalty Interest is a legal document used in the energy industry that allows an individual or entity (the assignor) to transfer a portion of their interest in an oil and gas lease to another party (the assignee). This assignment is made while reserving an overriding royalty interest, which entitles the assignor to a predetermined percentage of the revenues generated from the extracted oil and gas. In Nebraska, there are various types of Assignments of Partial Interest in Oil and Gas Lease Reserving an Overriding Royalty Interest, each serving specific purposes and meeting different requirements. These variations include: 1. Standard Assignment with Overriding Royalty Interest: This type of assignment is the most common, where an assignor transfers a specific part of their interest in an oil and gas lease to an assignee while retaining an overriding royalty interest. 2. Assignment with Limited Term Overriding Royalty Interest: In this type of assignment, the assignor transfers both a partial interest and a time-limited overriding royalty interest to the assignee. The overriding royalty interest remains in effect for a predetermined period, after which it reverts to the assignor. 3. Assignment with Carved-out Overriding Royalty Interest: This assignment allows the assignor to retain an overriding royalty interest carved out from a specific part of the assigned interest. This might occur when the assignor wishes to retain royalties only on certain lands or developments within the lease. 4. Assignment with Proportional Overriding Royalty Interest: This type of assignment involves a proportional overriding royalty interest, where the assignor retains a royalty equivalent to their share of the assigned interest. For example, if the assignor transfers 50% of their interest, they would retain a 50% overriding royalty interest. 5. Assignment with Vested Overriding Royalty Interest: In certain cases, the assignor may grant a vested overriding royalty interest to the assignee. This means that the overriding royalty interest becomes effective immediately upon execution of the assignment rather than waiting for production or other specified events. 6. Assignment with Variable Overriding Royalty Interest: This assignment grants the assignor a variable overriding royalty interest based on the production levels or net revenue generated from the assigned interest. The percentage of the overriding royalty interest may vary depending on the performance of the lease. It is important to note that these variations may differ in their specific terms and conditions based on the agreement between the assignor and assignee. Legal advice and consultation prior to executing any assignment are highly recommended ensuring compliance with relevant Nebraska laws and regulations regarding oil and gas leases.
Nebraska Assignment of Partial Interest in Oil and Gas Lease Reserving An Overriding Royalty Interest
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Overriding Royalty Interest Conveyance means an assignment, in form and substance acceptable to Lender, pursuant to which Borrower grants in favor of Lender an overriding royalty interest equal to six and one-fourth percent (6.25%) of Hydrocarbons produced, saved and sold or used off the premises of the relevant Lease, ...
An overriding royalty interest (ORRI) is an interest carved out of a working interest. It is: A percentage of gross production that is not charged with any expenses of exploring, developing, producing, and operating a well. Overriding Royalty Interest (ORRI) (US) - Westlaw westlaw.com ? Glossary ? PracticalLaw westlaw.com ? Glossary ? PracticalLaw
Overriding Royalty Interest: A given interest severed out of the record title interest or lessee's share of the oil, and not charged with any of the cost or expense of developing or operation. The interest provides no control over the operations of the lease, only revenue from lease production. Transferring Oil and Gas Lease Interests Bureau of Land Management (.gov) ? Assignments Handout_6 Bureau of Land Management (.gov) ? Assignments Handout_6 PDF
ORRIs are created out of the working interest in a property and do not affect mineral owners. An overriding royalty interest (ORRI) is often kept or assigned to a geologist, landman, brokerage, or any entity that was able to reserve an interest in the properties.
An overriding royalty interest (ORRI) is an interest carved out of a working interest. It is: A percentage of gross production that is not charged with any expenses of exploring, developing, producing, and operating a well.
You may convey overriding royalty interest on either an Assignment of Record Title Interest (Form 3000-3), a Transfer of Operating Rights (Form 3000-3a), or on a private assignment. We only require filing of one signed copy per assignment plus a nonrefundable filing fee found at 43 CFR 3000.12.
How to calculate the overriding royalty interest? ORRI = NRI * 5 percent. $750,000 * 0.005 = $3,750. What is Overriding Royalty Interest and How to Value it? pheasantenergy.com ? overriding-royalty-in... pheasantenergy.com ? overriding-royalty-in...
Any partial assignment of any lease shall segregate the assigned and retained portions thereof, and as above provided, release and discharge the assignor from all obligations thereafter accruing with respect to the assigned lands; and such segregated leases shall continue in full force and effect for the primary term ... 30 U.S. Code § 187a - Oil or gas leases; partial assignments cornell.edu ? uscode ? text cornell.edu ? uscode ? text
