This form is used when an Assignor was granted the right to receive, at payout, a certain reversionary working interest in the Lease. Payout has not occurred, and Assignor is vested with beneficial ownership of the Interest in the Leases and Lands. The purpose of this Assignment and the intention of Assignor is to assign to Assignee, the Interest.
South Dakota Assignment of A Diversionary Working Interest is a legal document that involves the transfer of ownership or rights to a diversionary working interest in an oil and gas lease located in South Dakota. This assignment allows the assignor (the party transferring the interest) to transfer their rights, title, and interest in the diversionary working interest to the assignee (the party receiving the interest). A diversionary working interest refers to the ownership interest in an oil and gas lease that reverts to the lessor or original owner after a certain event or time period. In South Dakota, there may be different types of Assignment of A Diversionary Working Interest, depending on the specific terms and conditions outlined in the lease agreement. Key terms related to South Dakota Assignment of A Diversionary Working Interest include: 1. Diversionary Interest: The ownership interest that reverts to the lessor or original owner. 2. Working Interest: The operating interest in the lease, which entitles the owner to a percentage share of the costs, risks, and profits associated with the exploration and production of oil and gas. 3. Assignor: The party transferring their diversionary working interest to another party. 4. Assignee: The party receiving the diversionary working interest. South Dakota Assignment of A Diversionary Working Interest may vary in terms of assignment provisions, consideration (compensation), rights and responsibilities of the assignor and assignee, and conditions triggering the diversionary interest. Some common types of South Dakota Assignment of A Diversionary Working Interest include: 1. Absolute Assignment: A complete transfer of the diversionary working interest, where the assignor relinquishes all rights, title, and interest in the lease. 2. Partial Assignment: The assignor transfers only a portion of their diversionary working interest to the assignee, while retaining some ownership rights. 3. Temporary Assignment: The diversionary interest is assigned for a specific period, after which it reverts to the assignor. 4. Permanent Assignment: The diversionary working interest is assigned permanently, with no reversion back to the assignor. 5. Conditional Assignment: The diversionary interest is assigned based on certain conditions or events specified in the assignment agreement, such as completion of drilling operations or expiration of the primary lease term. In conclusion, South Dakota Assignment of A Diversionary Working Interest is a legally binding document used to transfer ownership or rights to a diversionary working interest in an oil and gas lease. The assignment can be absolute, partial, temporary, permanent, or conditional, depending on the specific terms and conditions agreed upon by the assignor and assignee.
