Nevada Assignment of Overriding Royalty Interest with Proportionate Reduction

• Category: Oil Gas and Minerals - Assignments
• State: Multi-State
• Control #: US-OG-282
• Format: Word; Rich Text

Description

This form is used by the Assignor to transfer, assign, and convey to Assignee an overriding royalty interest in a lease which may be proportionately reduced.

Nevada Assignment of Overriding Royalty Interest with Proportionate Reduction is a legal document used in the state of Nevada to transfer or assign the rights to an overriding royalty interest (ORRIS) in an oil and gas lease. It is typically used when a party wants to sell, transfer, or assign their ORRIS to another party for various reasons such as financial gain or risk reduction. The ORRIS is a type of royalty interest that is carved out of the lessee's working interest in an oil and gas lease. It entitles the holder to receive a percentage of the gross revenue from the production of oil and gas, without incurring any of the costs of exploration, development, or production. The Nevada Assignment of Overriding Royalty Interest with Proportionate Reduction outlines the terms and conditions of the assignment, including the parties involved, the effective date, the specific ORRIS being assigned, and any consideration or payment involved in the transaction. It also includes provisions for the proportionate reduction in the assigned ORRIS, which means that if the lease is reduced or eliminated in the future, the assigned ORRIS will be reduced proportionally. There are different types of Nevada Assignment of Overriding Royalty Interest with Proportionate Reduction, depending on the specific circumstances and parties involved. Some common variations include: 1. Full Assignment: In this type of assignment, the entire ORRIS is transferred from one party to another. The assignee becomes the new owner of the entire ORRIS and assumes all the rights and responsibilities associated with it. 2. Partial Assignment: This type of assignment involves transferring only a portion of the ORRIS to another party. The assignor retains a portion of the ORRIS while assigning the remaining portion to the assignee. The proportionate reduction will be calculated based on the assigned portion of the ORRIS. 3. Temporary Assignment: In certain cases, an ORRIS may be assigned temporarily for a specified period, after which the ownership reverts to the original owner. This type of assignment could be beneficial for parties seeking short-term financial gains while maintaining long-term ownership of the ORRIS. 4. Conditional Assignment: Sometimes, an assignment may be conditional, where certain criteria need to be met before the assignment becomes effective. For example, the assignment may be contingent upon the assignee securing financing or obtaining necessary regulatory approvals. In conclusion, the Nevada Assignment of Overriding Royalty Interest with Proportionate Reduction is an important legal document that allows for the transfer or assignment of an ORRIS in an oil and gas lease. It provides a framework for parties involved to outline the terms and conditions of the assignment, including any proportionate reduction that may occur in the assigned ORRIS. The different types of assignments include full, partial, temporary, and conditional assignments, depending on the specific circumstances and objectives of the parties involved.