Tennessee Assignment of Carried Working Interest is a legal agreement that involves the transfer of ownership rights and interests in an oil or gas project, particularly in Tennessee. This agreement assigns the carried working interest, which refers to the ownership share in the project's revenues and costs that is financially supported by another party, to a third party. In a Tennessee Assignment of Carried Working Interest, the assigning party, known as the assignor, transfers their rights and obligations to the assignee who then assumes the responsibilities associated with the interest. This agreement is commonly used in the oil and gas industry where operators may carry the working interest of other parties in exchange for a share of the revenue generated from the project. The Tennessee Assignment of Carried Working Interest serves as a means to redistribute the financial risk and burden among the project stakeholders. By assigning the carried working interest, the assignor can reduce risk exposure while the assignee gains the opportunity to participate in the project's profits without the initial financial burden. Different types of Tennessee Assignment of Carried Working Interest may include: 1. Partially Carried Working Interest Assignment: In this type of assignment, the assignor transfers a portion of their working interest while retaining a certain percentage of ownership. This allows for risk reduction while maintaining involvement in the project. 2. Fully Carried Working Interest Assignment: With this assignment, the assignor transfers their entire working interest to the assignee, relinquishing all financial responsibility. The assignee assumes full ownership and operational obligations related to the working interest. 3. Carried Working Interest Assignment with Diversionary Rights: In certain cases, an assignment may include diversionary rights, meaning that the working interest may revert to the assignor under specific circumstances. This offers more flexibility and protections to the assignor. 4. Joint Carried Working Interest Assignment: Multiple assignors may collaborate to assign their respective working interests to a single assignee. This type of assignment allows for a diversified risk-sharing approach among multiple owners. It is important to consult legal experts and professionals to understand the specific terms and conditions of a Tennessee Assignment of Carried Working Interest agreement. The agreement should outline the obligations, liabilities, revenue-sharing terms, and the circumstances of diversionary rights, if applicable, to ensure a clear understanding between the parties involved.
Tennessee Assignment of Carried Working Interest
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This interest is paid, or carried, for the drilling and or completion costs as specified in the contract between the parties, by another working interest owner typically until casing point is reached, or through the tanks, meaning through completion of the well, as agreed upon contractually.
Carried Costs / Carry: a disproportionate funding arrangement used in oil and gas joint development programs whereby one party pays all or a portion of another party's Working Interest costs with respect to a particular Oil and Gas Property, whether for a set period of time or up to a set amount of Carried Costs.
Oil and Gas Interest means non-operated or non-working direct and indirect interests in and rights with respect to oil, gas, mineral, and related properties (including revenues or net revenues therefrom) and assets of any kind and nature.
In the oil and gas context, a carried interest is a fractional oil and gas interest that is not required to pay for drilling or operational expenses for a limited time (carry period). These expenses are paid by the other working interest owners (called co-tenants) of the property.
The lessee of an oil or gas lease can assign the entire lease or part of it. In other words, the lessee can sell or transfer part of the estate or the entire estate to which they have the working rights. The assignee is assigned the working interest and lease obligations, including override royalty.
"CARRIED WORKING INTEREST" shall mean the percentage of Working Interest which is not burdened with any Expenses, Overhead and Costs. The owner of the Carried Working Interest is "carried" to the tanks, as that phrase is used in the industry, after which it shall pay its pro-rata share of Lease Operating Costs.
If a working interest owner has a percentage of ownership in an oil and gas lease and is involved with the development of the prospect, the other partners may grant them a "carry" i.e. the other partners will pay all or part of his or her share of the costs involved in the prospect.
A taxpayer whose principal business in Tennessee is manufacturing may elect to apportion net earnings to this state by multiplying the earnings by a fraction, the numerator of which is the total receipts of the taxpayer in Tennessee during the taxable year and the denominator of which is the total receipts of the ...
