This form is used when an Assignor transfers, assigns and conveys to Assignee an overriding royalty interest in all of the oil, gas, and other minerals produced, saved, and marketed from all of the Lands and Leases equal to a determined amount (the Override ), reserving the right to pool the assigned interest.
Puerto Rico Assignment of Overriding Royalty Interest when Assignor Reserves the Right to Pool the Assigned Interest — Short Form In Puerto Rico, an Assignment of Overriding Royalty Interest (ORRIS) can be executed when the assignor reserves the right to pool the assigned interest. ORRIS refers to a share of oil or gas production revenues, often in the form of a percentage interest, that is separate from the working interest in a lease. When an assignor reserves the right to pool the assigned interest in Puerto Rico, it means they retain the ability to combine the assigned ORRIS with other interests in a specific oil or gas lease. Pooling allows for efficient development and maximizes production potential. The Puerto Rico Assignment of ORRIS when Assignor Reserves the Right to Pool the Assigned Interest — Short Form is a document that outlines the terms and conditions of such an assignment. It is a concise version of the assignment agreement, providing the necessary details while being straightforward and easy to understand. The short form assignment agreement typically includes essential provisions such as: 1. Parties Involved: Clearly identifies the assignor and assignee, along with their contact information. 2. Description of the Assigned Interest: Provides a detailed description of the overriding royalty interest being assigned, including any specific terms or limitations. 3. Reservation of Pooling Rights: Specifies that the assignor reserves the right to combine the ORRIS with other interests in the lease for pooling purposes. 4. Consideration: States the consideration or compensation given to the assignor in exchange for the assignment of the ORRIS. 5. Representations and Warranties: Outlines the warranties and representations made by both the assignor and assignee regarding their rights to execute the assignment. 6. Governing Law: Determines the applicable law for the assignment, often referring to Puerto Rico law. It is important to note that there may be variations or specific names given to this type of assignment agreement in Puerto Rico, depending on the companies or individuals involved or any additional customized provisions. Some of these names may include Puerto Rico Assignment of ORRIS with Pooling Rights — Short Form or Puerto Rico Short Form Assignment of Overriding Royalty Interest with Reserved Pooling Rights. In conclusion, the Puerto Rico Assignment of Overriding Royalty Interest when Assignor Reserves the Right to Pool the Assigned Interest — Short Form is a vital legal document that outlines the assignment of a share of oil or gas production revenues while allowing the assignor to retain the right to pool the assigned interest. This agreement ensures clarity and protection of rights for both parties involved.
