This form is used by the Owner to provide notice that the overriding royalty interests which are owned by Owners are to be merged into, combined with, and a part of Owners working interest, and the net revenue interest in production Owner is entitled to in all oil and gas produced from the Lands and Leases.
A New York Notice of Merger of Working and Overriding Royalty Interests is a legal document that outlines the consolidation of two separate interests in an oil and gas lease. This notice is typically issued when there is a transaction or agreement between two parties related to the working interest and overriding royalty interest in a particular lease. Working interest refers to the ownership interest in an oil and gas lease that grants the holder the right to explore, develop, and produce minerals from a particular tract of land. It includes the responsibility for operational costs, such as drilling expenses and ongoing maintenance. On the other hand, overriding royalty interest is a non-operating interest that entitles the holder to a specific percentage of the minerals extracted from the lease. The overriding royalty interest is separate from the working interest and is typically granted to someone who does not assume the financial burden of exploration and production costs. When parties decide to merge or consolidate their interests, a New York Notice of Merger of Working and Overriding Royalty Interests is filed to initiate the process. This notice serves to inform all relevant stakeholders, such as other working interest owners and royalty interest holders, about the change in ownership structure and the redistribution of rights and responsibilities. It is important to note that there may be different types of New York Notices of Merger of Working and Overriding Royalty Interests, each specific to the particular circumstances of the transaction. For example, the notice may differ depending on whether it involves a partial or complete merger of interests. The notice may also differ based on the specific terms and conditions agreed upon by the parties involved. Overall, a New York Notice of Merger of Working and Overriding Royalty Interests is a significant legal document that formalizes the consolidation of working and overriding royalty interests in an oil and gas lease. It ensures transparency and notifies all affected parties of the change in ownership structure and the redistribution of rights and obligations.
