New Mexico Assignment of Overriding Royalty Interest with Proportionate Reduction is a legal document that enables the transfer of rights to override royalty interests from one party to another, with the provision of proportionate reduction. In the oil and gas industry, overriding royalty interests (ORRIS) refer to a type of interest granted to an individual or entity, typically the landowner or a third party, granting them a share of production revenues. The New Mexico Assignment of Overriding Royalty Interest with Proportionate Reduction specifically applies to assignments within the state of New Mexico, adhering to its laws and regulations. With this assignment, the assignor agrees to transfer their ORRIS to the assignee, who becomes the new recipient of the overriding royalty interest. It is crucial to outline the details of the agreement, including the exact percentage or fraction of interest being transferred. The document should also identify the specific property or lease to which the assignment applies. To ensure fairness and consistency, the term "proportionate reduction" is included in the assignment. This means that if there are multiple overriding royalty holders on the same property or lease, and any reductions need to take place, the assignee's interest will be reduced similarly to maintain a proportional distribution of revenue. This provision safeguards the assignee's interest and ensures equitable treatment regarding production revenue. Different types or variations of the New Mexico Assignment of Overriding Royalty Interest with Proportionate Reduction may include additional clauses or provisions to address specific scenarios or requirements. These variations may include provisions related to operating costs, environmental liabilities, rights to audit, or other financial considerations. It is essential to consult with legal professionals knowledgeable in New Mexico oil and gas laws when drafting or executing this assignment. Accurate and comprehensive documentation is crucial to protect the interests of all parties involved in the assignment and to ensure compliance with state regulations. Using relevant keywords: — New Mexico Assignment of Overriding Royalty Interest — Overriding Royalty Interest with Proportionate Reduction ORRISRI Transfer in New Mexico - Oil and Gas Assignment in New Mexico — Proportionate Reduction ClausMorrisRI Assignment — Legal Documentation for New MexicORRISRI Assignments — New Mexico Oil and Gas Law— - Equitable Revenue Distribution in ORRIS Assignments ORRISRI Assignment Variations in New Mexico — Compliance with New Mexico Regulations in ORRIS Transfers.
New Mexico Assignment of Overriding Royalty Interest with Proportionate Reduction
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How to fill out Assignment Of Overriding Royalty Interest With Proportionate Reduction?
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FAQ
How to calculate the overriding royalty interest? ORRI = NRI * 5 percent. $750,000 * 0.005 = $3,750.
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.
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.
If at any time Assignee desires to transfer or dispose of all or any portion of the Overriding Royalty Interest, Assignee must first give to Assignor written notice thereof stating: (a) the amount of the Overriding Royalty Interest offered by Assignee; (b) the form of consideration (which shall be either cash or a ...
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, ...
Overriding royalty interest: Unlike mineral and royalty interests, an overriding royalty interest runs with a lease and not with the land. Therefore, they only remain in effect for as long as a lease is in effect and they expire when a lease expires.
