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.
The Nebraska Assignment of Overriding Royalty Interest (ORRIS) when Assignor Reserves the Right to Pool the Assigned Interest — Short Form is a legal document that outlines the transfer of an ORRIS, with the assignor reserving the right to pool the assigned interest. In this short form, the important details are provided concisely. Here is some relevant content explaining the intricacies and potential types of this type of assignment: 1. Understanding the Nebraska Assignment of Overriding Royalty Interest (ORRIS): The Nebraska Assignment of Overriding Royalty Interest refers to the transfer of a share or portion of the royalty interest that surpasses the working interest in an oil or gas lease. This assignment aims to grant an individual or entity the right to receive a percentage of the revenues generated from the production or extraction of minerals from a designated property. This legal instrument signifies the agreement between the assignor, who is relinquishing their ORRIS, and the assignee, who will inherit the rights and benefits associated with the assigned interest. 2. Pooling and the Assigned Interest: In certain cases, the assignor may choose to retain the right to pool the assigned interest. Pooling allows multiple smaller tracts or interests to be combined into a single unit for efficient extraction. By reserving the right to pool, the assignor can determine how their assigned ORRIS will be utilized or combined with other interests in the same property, maximizing the potential for increased production and profitability. Types of Nebraska Assignment of Overriding Royalty Interest when Assignor Reserves the Right to Pool the Assigned Interest — Short Form: a. Assignment with Reservation of Pooling Authority: This type of assignment grants the assignor the right to pool the assigned interest. The assignor retains the decision-making power regarding how the ORRIS will be integrated into the larger pooled unit. b. Assignment with Limitations on Pooling: In this scenario, the assignor reserves the right to pool the assigned interest but with certain limitations defined in the document. These limitations could specify the size or timeframe for pooling, ensuring the assignor's interests are protected while still allowing for potential collaboration. c. Assignment with Conditions for Pooling: This particular type of assignment requires certain conditions to be met for the assignor to exercise their right to pool. These conditions may include specific production thresholds, technological advancements, or market conditions. Such conditions safeguard the assignor's interests while offering flexibility based on factors influencing the industry. d. Assignment with Shared Pooling Authority: This assignment involves both the assignor and assignee sharing the authority to pool the assigned interest. It establishes a collaborative environment where both parties contribute to and benefit from the decision-making process related to pooling. In conclusion, the Nebraska Assignment of Overriding Royalty Interest when Assignor Reserves the Right to Pool the Assigned Interest — Short Form is a legal document that facilitates the transfer of an ORRIS while allowing the assignor to retain the right to pool the assigned interest. This document outlines the rights, responsibilities, and potential types of arrangements between the assignor and assignee in regard to pooling, ensuring clarity and safeguarding the interests of both parties involved.
