This form is used when an Assignor assigns, transfers, and conveys to Assignee an overriding royalty interest in the Lease and all of the oil and gas produced, saved and marketed from the Lease, out of the interest owned by Assignor, with proportionate reduction (the Override ).
A Tennessee Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is a legal document that transfers or assigns the ownership of a portion of the overriding royalty interest (ORRIS) within a single lease agreement in Tennessee. This document may be used when there are multiple parties with existing Orris in a lease, and one party wishes to assign a portion of their share to another party. Keywords: Tennessee assignment, overriding royalty interest, single lease, proportionate reduction, transfer, assign, ownership, lease agreement, parties, ORRIS. There are two common types of Tennessee Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction: 1. Full Assignment: This type of assignment involves the complete transfer of the assigned party's entire proportionate interest in the overriding royalty interest. It means that the assigning party will no longer hold any rights or benefits associated with the ORRIS in the specific lease. 2. Partial Assignment: In this type of assignment, the assigning party transfers only a portion or percentage of their proportionate interest in the overriding royalty interest. The assigning party retains ownership of the remaining share and continues to receive benefits and rights associated with the assigned portion. When drafting a Tennessee Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction, it is essential to include specific details such as the names of the assigning party and the assignee, the lease agreement details (including lease identification and effective date), a clear description of the proportionate interest being assigned, and any consideration or compensation involved in the assignment. This document should also specify any relevant conditions or restrictions, such as limitations on the use of assigned ORRIS or requirements for payment of expenses related to the assigned interest. Both parties involved in the assignment should carefully review and understand the terms outlined within the document before signing. It is advisable to seek legal counsel to ensure compliance with Tennessee state laws and to protect the rights and interests of all parties involved in the assignment.
