This form is used when the Assignor transfers, assigns, and conveys to Assignee, as a production payment, a percentage of 8/8 of all oil, gas, and other minerals produced and saved from the Lands under the terms of the Lease and any renewals or extensions of the Lease which are obtained by Assignor or Assignor's successors and/or assigns.
A Texas Assignment of Production Payment by Lessee to a Third Party is a legal document that allows the lessee (or tenant) of an oil or gas lease in Texas to transfer the right to receive production payments to a third party. This assignment can be crucial in securing financing for the lessee or fulfilling other financial obligations. The document outlines the terms and conditions of the assignment, including the effective date, the parties involved, and the specific oil or gas lease being assigned. It also addresses the extent of the assignment, any limitations, and the rights and responsibilities of both the original lessee and the third party. Keywords: Texas, Assignment of Production Payment, Lessee, Third Party, oil lease, gas lease, financing, effective date, parties involved, assignment limitations, rights, responsibilities. Types of Texas Assignment of Production Payment by Lessee to Third Party: 1. Absolute Assignment: This type of assignment transfers the full rights and ownership of the production payment to the third party. The original lessee no longer has any claim to the payment. 2. Security Assignment: In a security assignment, the production payment is assigned to the third party as collateral for a loan or other financial obligation. The original lessee retains the right to reclaim the assigned payment upon fulfilling the terms of the loan. 3. Partial Assignment: A partial assignment allows the lessee to transfer only a portion of the production payment to the third party, while still retaining some rights. This type of assignment is commonly used when the lessee wants to maintain some control over the payment. 4. Revocable Assignment: A revocable assignment grants the lessee the right to terminate or revoke the assignment at any time. This type of assignment provides flexibility to the lessee in case of changed circumstances. 5. Irrevocable Assignment: In an irrevocable assignment, the lessee relinquishes any right to terminate or revoke the assignment. The third party has a permanent claim to the assigned production payment. Note: It is crucial to consult with an attorney or legal professional for accurate and specific information regarding the Texas Assignment of Production Payment by Lessee to Third Party, as the content provided above is meant for informational purposes only.
