This form is used when the Assignor transfers, assigns, and conveys to Assignee, as a production payment, a percentage of 8/8 of all oil, gas, and other minerals produced and saved from the Lands under the terms of the Lease and any renewals or extensions of the Lease which are obtained by Assignor or Assignor's successors and/or assigns.
A New Mexico Assignment of Production Payment by Lessee to Third Party is a legal document that allows the lessee (the party responsible for the production of minerals or hydrocarbons) to assign their right to receive payment for such production to a third party. This assignment can occur for various reasons, such as the lessee wanting to monetize future production payments, to secure financing, or to transfer the payment obligation to another party. Here are some different types of New Mexico Assignment of Production Payment by Lessee to Third Party: 1. Absolute Assignment: This type of assignment involves the complete transfer of the lessee's right to receive production payments to a third party. The third party becomes the new payee and is entitled to receive all future payments directly from the purchaser or operator of the minerals or hydrocarbons. 2. Partial Assignment: In this case, the lessee assigns only a portion of their production payments to a third party. The assigned percentage or specific dollar amount is transferred, while the remaining payments continue to be received by the lessee. 3. Security Assignment: A security assignment is used to secure a loan or debt. The lessee assigns their production payments to a third party as collateral. If the lessee defaults on their obligations, the assignee (third party) can take possession of the assigned payments to satisfy the debt. 4. Operating Agreement Assignment: This type of assignment occurs when the lessee assigns their production payments to a new party under the terms of an operating agreement. This can be done to redistribute interests or restructure ownership rights among multiple parties involved in the production process. 5. Assignment for Financing: In some cases, the lessee may assign their production payments to a third party as a means to obtain financing. This type of assignment allows the lessee to potentially receive a lump sum payment upfront, rather than waiting for future production payments. It is important to consult with legal professionals or experienced advisors when considering or drafting a New Mexico Assignment of Production Payment by Lessee to Third Party, as various legal and financial implications may arise.
