New Mexico Assignment of Overriding Royalty Interest Limited As to Depth is a legal agreement specific to the state of New Mexico regarding the assignment of an overriding royalty interest, with a specific limitation on depth. This assignment allows an individual, referred to as the assignor, to transfer a portion or all of their overriding royalty interest in a particular oil or gas lease to another individual or entity, known as the assignee. The overriding royalty interest is a share of the proceeds from the production or sale of oil and gas that is carved out of the working interest owner's share. This means that the assignor will receive a portion of the revenue generated from the lease, usually a percentage, without actually having the responsibility of bearing the costs and risks associated with drilling, operating, and maintaining the lease. The "Limited As to Depth" clause in the assignment specifies that the overriding royalty interest only applies to a certain depth or depth interval within the lease. This limitation ensures that the assignor does not receive a share of the proceeds from the production below a specified depth, which could be due to various reasons such as geological complexities, technical limitations, or interests of other parties. Different types of New Mexico Assignment of Overriding Royalty Interest Limited As to Depth may include: 1. Vertical Depth Limitation: This type of assignment limits the overriding royalty interest to a specific vertical depth within the lease. It may be defined using precise measurements or by referential layers, such as geological formations or intervals. 2. Horizontal Depth Limitation: This type of assignment limits the overriding royalty interest to a specific horizontal distance from a designated point within the lease. It ensures that the assignor only receives a share of the proceeds from the production within a specific area or reservoir. 3. Depth Interval Limitation: Instead of specifying a single depth or distance, this type of assignment limits the overriding royalty interest to a specific interval within the lease. It typically includes both a minimum and maximum depth or distance range to define the scope of the assignment. It is important for both parties, the assignor and assignee, to carefully review and negotiate the terms of the New Mexico Assignment of Overriding Royalty Interest Limited As to Depth. This includes considering factors such as the expected productivity at different depths, future drilling plans, geological considerations, and potential conflicts with existing interests. Seeking legal advice is recommended to ensure compliance with New Mexico state laws and regulations regarding the assignment of overriding royalty interests.
New Mexico Assignment of Overriding Royalty Interest Limited As to Depth
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How to fill out Assignment Of Overriding Royalty Interest Limited As To Depth?
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FAQ
How to calculate the overriding royalty interest? ORRI = NRI * 5 percent. $750,000 * 0.005 = $3,750.
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.
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.
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: 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.
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.
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.
