This form is used when Assignee has recovered certain costs out of Assignee's share of the proceeds of production of oil and gas from producing wells on the Lease, and Assignee's interest in the Lease is reduced. Assignor will be vested with title to an interest in the Lease, the "Reversionary Interest".
Oregon Notice of Payout by Party Entitled to Diversionary Interest is a legal document that notifies an interested party about a payout or distribution of funds related to a diversionary interest. In the state of Oregon, there are various situations and types of Notice of Payout by Party Entitled to Diversionary Interest that may occur. These may include: 1. Oil and Gas Lease: In cases where a property owner has granted an oil and gas lease to a company, the diversionary interest may entitle the owner to a portion of the proceeds from the extraction and sale of resources. The Notice of Payout would notify the owner about the payout amount and provide details about the lease agreement and extraction activities. 2. Trust Distribution: When a trust is established, certain assets or funds may be set aside for specific beneficiaries. If a diversionary interest is included in the trust, it means that any remaining funds, after the initial beneficiaries pass away or fulfill certain conditions, will be distributed to the party entitled to the diversionary interest. The Notice of Payout would inform the entitled party about the distribution from the trust. 3. Life Insurance Policies: Some life insurance policies include a diversionary interest. This means that if the primary beneficiary of the policy passes away before receiving the full payout, the diversionary interest holder is entitled to receive the remaining amount. The Notice of Payout would provide details about the policy, the primary beneficiary's death, and instructions for the entitled party to claim the remaining funds. 4. Property Sales and Transfers: In certain property transactions, a diversionary interest may be attached to the sale or transfer. This means that if certain conditions are not met within a specified timeframe, the property ownership reverts to the original owner or their designated party. The Notice of Payout would outline the conditions, the resulting reversion, and any applicable payout to the entitled party. 5. Royalty Agreements: In cases where an individual owns the mineral rights to a piece of land and leases those rights to a company for resource extraction, a diversionary interest may grant the owner a percentage of the royalties earned from the extraction activities. The Notice of Payout would provide information about the payout calculation, the royalties earned, and instructions for the entitled party to receive their share. In all cases, the Oregon Notice of Payout by Party Entitled to Diversionary Interest serves as a legal notification to inform the entitled party about the upcoming or available distribution of funds or assets. It includes relevant details, such as the nature of the diversionary interest, the amount to be paid out, any required documentation or steps to claim the payout, and contact information for further inquiries.
