This form is used when, as a result of continuous production from the Lease and Lands, payout, as defined in an Assignment, has occurred, and Declarant is entitled to elect to convert the Override to a Working Interest, as provided for in the Assignment.
The Pennsylvania Declaration of Election to Convert Overriding Royalty Interest to Working Interest is a legal document used in the oil and gas industry to convert a royalty interest into a working interest. This declaration is commonly used when a party who owns an overriding royalty interest (ORRIS) wishes to convert it into a working interest, which provides them with a direct ownership interest in the production and a share of the cost and income associated with the operation. Keywords: Pennsylvania, Declaration of Election, Convert, Overriding Royalty Interest, Working Interest, oil and gas industry Different types of Pennsylvania Declarations of Election to Convert Overriding Royalty Interest to Working Interest may include: 1. Single Well Declaration: This type of declaration applies to converting an ORRIS to a working interest for a specific well or wells within a defined area. It allows the owner to participate in the costs and profits associated with those particular wells. 2. Area-Wide Declaration: This type of declaration encompasses a larger geographical area and provides the owner of the ORRIS with the option to convert their interest to a working interest across multiple wells or leasehold locations within the designated area. 3. Partial Conversion Declaration: In certain cases, the owner of an ORRIS may choose to convert only a part of their royalty interest into a working interest. This can be done through a partial conversion declaration, specifying the exact percentage or portion they wish to convert. 4. Full Conversion Declaration: This type of declaration is used when the owner of an ORRIS wants to convert their entire royalty interest into a working interest. It transfers the rights and responsibilities of the royalty interest owner to become a direct working interest owner. By filing a Pennsylvania Declaration of Election to Convert Overriding Royalty Interest to Working Interest, parties involved can ensure a clear and legally binding agreement to convert their royalty interest into a working interest, facilitating their direct participation in the operations and financial outcomes of oil and gas production in Pennsylvania.
