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 ).
The Texas Assignment of Overriding Royalty Interest for Single Lease — Proportionate Reduction is a legal document that allows the transfer of overriding royalty interests (ORRIS) from one party to another in a specific lease agreement or property in Texas. It involves the proportional reduction of the overriding royalty interest. An overriding royalty interest is a percentage or fraction of the gross production or revenue from oil, gas, or mineral extraction obtained from a particular lease. It is typically granted to an individual or entity like a landowner, mineral rights' owner, or operator, and allows them to receive a certain portion of the revenue generated from the lease. The Texas Assignment of Overriding Royalty Interest for Single Lease — Proportionate Reduction comes into play when the owner of the overriding royalty interest wishes to assign or transfer their interest to another party. This assignment can occur for various reasons, such as financial considerations, estate planning, or investment diversification. The agreement typically outlines the details of the overriding royalty interest being assigned, including the specific lease or property where it applies. It also includes the percentage or fraction of the interest being transferred and any terms or conditions associated with the assignment. It is essential to accurately draft the Texas Assignment of Overriding Royalty Interest for Single Lease — Proportionate Reduction, as any ambiguity or errors may lead to disputes or legal complications in the future. Seeking the expertise of legal professionals specializing in oil, gas, and mineral rights is recommended to ensure compliance with Texas state laws and regulations. Different types of Texas Assignment of Overriding Royalty Interest for Single Lease — Proportionate Reduction may include variations based on the specific lease agreement terms, the parties involved, or any unique provisions required by either the assignor or the assignee. These variations can be tailored to meet the specific needs and circumstances of the parties involved. In conclusion, the Texas Assignment of Overriding Royalty Interest for Single Lease — Proportionate Reduction is a crucial legal document that enables the transfer of overriding royalty interests in Texas. It ensures a smooth and transparent process for assigning these interests while safeguarding the rights and obligations of all parties involved.
