The form is used when the Assignor transfers, assigns, and conveys to Assignee an overriding royalty interest in the Leases and all of the oil, gas and other minerals produced, saved and marketed from the Lease equal to a pecentage of 8/8 (the Override ).
New Mexico Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction: In the oil and gas industry, the Assignment of Overriding Royalty Interest (ORRIS) is a crucial agreement that allows an owner of an ORRIS in New Mexico to transfer their interest to another party. This legal document ensures the smooth transfer of the ORRIS, without any proportionate reduction, to the assignee. Keywords: New Mexico, Assignment of Overriding Royalty Interest, Overriding Royalty Interest Owner, No Proportionate Reduction. Types of New Mexico Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction: 1. Standard Assignment: This type of assignment involves a straightforward transfer of the overriding royalty interest from the owner to the assignee. It states the specific details of the ORRIS, including the respective percentages and the well or lease associated with it. 2. Partial Assignment: In some cases, an ORRIS owner might choose to transfer only a portion of their interest to another party. This partial assignment allows the owner to retain a percentage of the ORRIS while transferring the remainder to the assignee, ensuring no proportionate reduction. 3. Temporary Assignment: A temporary assignment refers to a time-limited transfer of the ORRIS. This type of assignment is common when the assignor expects a temporary absence or wishes to provide a short-term benefit to the assignee, without affecting the long-term ownership. 4. Permanent Assignment: In contrast to a temporary assignment, a permanent assignment involves a complete transfer of the ORRIS ownership to the assignee. This type of assignment may occur due to various reasons, such as the original owner's desire to liquidate their interest or exit the investment. 5. Multiple Assignments: In certain cases, an ORRIS owner might opt to assign their interest to multiple assignees simultaneously or successively, depending on specific circumstances or contractual obligations. Each assignment should be clearly documented and authorized to ensure clarity and avoid any potential disputes. When undertaking a New Mexico Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction, it is important for both parties to seek legal counsel experienced in oil and gas law. This ensures that the assignment properly reflects the intentions of the parties involved and protects their interests. It is crucial to carefully review the language used in the assignment agreement to ensure that there is no proportionate reduction of the ORRIS during the transfer process. By being diligent in the assignment process, both the assignor and assignee can avoid any disputes or legal complications in the future. In conclusion, a New Mexico Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction is a critical legal document that enables the smooth transfer of an ORRIS from the owner to the assignee without any reduction in their respective interests. It is imperative to understand the various types of assignments and seek professional guidance to ensure a successful and legally sound transfer process.
