Nebraska Assignment of Overriding Royalty Interest (No Proportionate Reduction) is a legal document that pertains to the transfer of ownership of an overriding royalty interest (ORRIS). An ORRIS is a percentage of revenue or production derived from an oil and gas lease, which is separate from the working interest in the lease. In Nebraska, when an ORRIS is assigned with "no proportionate reduction," it means that the assignor agrees to not reduce or decrease the ORRIS even if additional interests are subsequently assigned. This type of assignment is commonly used in the oil and gas industry when one party wants to transfer their interest in an ORRIS to another party without any reduction in the percentage of revenue or production. By executing a Nebraska Assignment of Overriding Royalty Interest (No Proportionate Reduction), the assignor (original owner) assigns their rights and interests in the ORRIS to the assignee (new owner), who assumes all the rights, obligations, and benefits associated with the ORRIS. The Nebraska Assignment of Overriding Royalty Interest (No Proportionate Reduction) may vary based on specific conditions or variations, such as: 1. Special Provisions: This version of the assignment agreement may contain additional provisions that address specific terms and conditions between the assignor and assignee. 2. Multi-Part Assignment: In some cases, where multiple assignors and assignees are involved, a multi-part assignment document may be drafted to ensure proper and lawful transfer of the ORRIS. 3. Partial Assignment: If the assignor wishes to transfer only a portion or certain percentage of their ORRIS, a partial assignment form may be used, explicitly stating the specific interest being transferred. 4. Restrictive Covenants: The assignment may include restrictive covenants that limit the assignor's ability to compete or engage in similar oil and gas activities in the same geographic area or timeframe. 5. Ratification of Prior Agreements: The parties may choose to ratify and reaffirm any prior agreements or modifications related to the ORRIS, ensuring their enforceability. When drafting or reviewing a Nebraska Assignment of Overriding Royalty Interest (No Proportionate Reduction), it's crucial to consult with legal professionals specialized in oil and gas laws to ensure compliance with Nebraska state regulations and to protect the interests of all involved parties.
Nebraska Assignment of Overriding Royalty Interest (No Proportionate Reduction)
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FAQ
8/8ths / 8/8ths Basis: a term used to describe either the full Working Interest or full Net Revenue Interest with respect to a given Tract. Pursuant to an Oil and Gas Lease, the Lessor retains the Lessor Royalty.
Non-Participating Royalty Interest (NPRI) Unlike a mineral interest owner, the NPRI owner does not have ?executive? rights, meaning they cannot sign an oil and gas lease or participate in the benefits of lease bonus or delay rentals.
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.
The value of an overriding royalty interest is simple to calculate since it is a percent of the working interest lease. The ORRI value is based on production on the acreage leased by the working interest.
It is calculated as follows: Volume X Price ? Deductions ? Taxes X Owner Interest = Your Royalty Payment. Whether you are a mineral owner receiving royalty checks or just wanting to know what your minerals are worth, LandGate knows what they are worth and can market your minerals to get you the most money.
The royalty percentage is usually 12.5% to 15% but can change based on regional regulations or negotiations. Types of Leases: There are different types of oil and gas leases, and they affect royalty calculations differently.
?To pay Lessor for gas (including casinghead gas) and all other substance covered hereby, a royalty of 3/16 of the proceeds realized by Lessee from the sale thereof.? This simply means the operator will pay a royalty of 3/16 of revenue generated from production on the property.
8/8ths / 8/8ths Basis: a term used to describe either the full Working Interest or full Net Revenue Interest with respect to a given Tract. Pursuant to an Oil and Gas Lease, the Lessor retains the Lessor Royalty.