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.
Rhode Island Assignment of Overriding Royalty Interest when Assignor Reserves the Right to Pool the Assigned Interest — Short Form Overview In Rhode Island, an Assignment of Overriding Royalty Interest (ORRIS) is a legal agreement where the assignor transfers their right to receive royalty payments from oil and gas production to the assignee. This agreement allows the assignee to collect a share of the revenue generated from the assigned interest. However, in certain cases, the assignor may reserve the right to pool the assigned interest. This means that the assignor can combine their assigned interest with other mineral rights to maximize production and efficiency. Different Types of Rhode Island Assignment of Overriding Royalty Interest when Assignor Reserves the Right to Pool the Assigned Interest — Short Form 1. Standard Rhode Island Assignment of Overriding Royalty Interest with Pooling Reservation: This type of assignment agreement allows the assignor to reserve the right to pool the assigned interest. By pool, it means the assignor can combine their interest with other mineral rights under a legal agreement, called a pooling agreement or unitization agreement. This arrangement helps facilitate the extraction of oil and gas resources from a larger combined area, thereby increasing efficiency and profitability. 2. Rhode Island Assignment of Overriding Royalty Interest with Pooling Reservation and Conditions: In some cases, the assignor may impose specific conditions on the pooling reservation. These conditions may include the assignor's consent to specific pooling agreements, restrictions on how the assigned interest can be pooled, or requirements for the assignee to seek prior approval before entering into a pooling agreement. These conditions aim to protect the assignor's interests and ensure that pooling decisions align with their overall goals. 3. Rhode Island Assignment of Overriding Royalty Interest with Optional Pooling Reservation: This type of assignment agreement provides the assignor with the option to reserve the right to pool the assigned interest. The assignor can choose whether to exercise this right based on the prevailing market conditions, production potential, or other factors that deem pooling beneficial. By giving the assignor this flexibility, they can make timely decisions that maximize the value of their assigned interest. 4. Rhode Island Assignment of Overriding Royalty Interest with Pooling Reservation and Limited Term: In certain cases, the assignor may include a limited term provision within the assignment agreement. This means that the assignor can only reserve the right to pool the assigned interest for a specific duration. After the expiration of the limited term, the right to pool may no longer be in effect. This type of agreement allows the assignor to re-evaluate the pooling arrangement periodically and adapt to changing circumstances. Conclusion A Rhode Island Assignment of Overriding Royalty Interest when Assignor Reserves the Right to Pool the Assigned Interest — Short Form is a legal agreement that enables the assignor to transfer their right to receive royalty payments while still retaining the option to pool their assigned interest with other mineral rights. The different types of such assignments can include standard pooling reservations, those with specific conditions, optional pooling reservations, or those with a limited term provision. These agreements offer flexibility, protection, and potential for enhanced production and revenue generation.
