This form is used when, as a result of continuous production from the Lease and Lands, payout, as defined in an Assignment, has occurred, and Declarant is entitled to elect to convert the Override to a Working Interest, as provided for in the Assignment.
The Tennessee Declaration of Election to Convert Overriding Royalty Interest to Working Interest is a legal document that outlines the process and terms for converting an overriding royalty interest (ORRIS) into a working interest in the state of Tennessee. This declaration allows the owner of an ORRIS to exercise their right to convert their interest into a working interest, which provides them with a more active role in the management and operations of an oil or gas project. Keywords: Tennessee, Declaration of Election, Convert, Overriding Royalty Interest, Working Interest, Legal Document, ORRIS, Oil and Gas Project. Types of Tennessee Declaration of Election to Convert Overriding Royalty Interest to Working Interest: 1. Individual Declaration: This type of declaration is filed by an individual who holds an overriding royalty interest in an oil or gas project located in Tennessee. The individual exercises their right to convert the overriding royalty interest into a working interest, thereby becoming a direct participant in the operations and decision-making process. 2. Corporate Declaration: In some cases, corporations or companies may hold overriding royalty interests in oil or gas projects. This type of declaration is filed by a corporate entity, representing its decision to convert the overriding royalty interest into a working interest. The corporation becomes actively involved in the project's day-to-day activities, taking on responsibilities and liabilities associated with being a working interest owner. 3. Partnership Declaration: Partnerships or joint ventures that hold overriding royalty interests can also choose to convert their interests into working interests through this specific declaration. The partners collectively exercise their rights as a group and convert their Orris into working interests, sharing the responsibilities, risks, and rewards associated with the project. 4. Leaseholder Declaration: When a Tennessee leaseholder holds an overriding royalty interest, they have the option to convert their interest into a working interest through this declaration. By doing so, the leaseholder gains more control over the development and production activities on their leased property, as they become an active participant in the project's operations. Overall, the Tennessee Declaration of Election to Convert Overriding Royalty Interest to Working Interest is a crucial legal document that allows individuals, corporations, partnerships, and leaseholders in Tennessee to transform their passive Orris into active working interests. By exercising this right, stakeholders gain increased involvement, decision-making power, and potential financial benefits in oil and gas projects.
