This form is used when an Assignor was granted the right to receive, at payout, a certain reversionary working interest in the Lease. Payout has not occurred, and Assignor is vested with beneficial ownership of the Interest in the Leases and Lands. The purpose of this Assignment and the intention of Assignor is to assign to Assignee, the Interest.
Texas Assignment of A Diversionary Working Interest is a legal document that transfers the rights and interests in a diversionary working interest from one party to another in the state of Texas. A diversionary working interest refers to the ownership stake in an oil, gas, or mineral lease that reverts to the assignee upon the occurrence of certain conditions or the expiration of a specific period of time. This assignment allows the assignor, who originally held the working interest, to transfer their rights and obligations to another party, known as the assignee. The assignee then becomes the new owner of the diversionary working interest, entitled to receive the benefits and bear the burdens associated with it. The Texas Assignment of A Diversionary Working Interest typically outlines the details of the transfer, including the names and addresses of both parties, the effective date of the assignment, the description of the working interest being transferred, any applicable terms and conditions, and the consideration or payment involved in the transfer. It's important to note that there might be different types of Texas Assignment of A Diversionary Working Interest, each serving specific purposes or containing different clauses. Some common types include: 1. Partial Assignment: This type involves the transfer of only a portion or percentage of the diversionary working interest, allowing the assignor to retain a certain percentage of ownership while transferring the rest. 2. Full Assignment: In a full assignment, the assignor transfers their entire diversionary working interest to the assignee, relinquishing their ownership rights completely. 3. Conditional Assignment: This type of assignment is subject to specific conditions or events. For example, the diversionary working interest may only transfer to the assignee if certain production levels are achieved or if certain milestones are met. 4. Contingent Assignment: Contingent assignments are dependent on future events or circumstances. The diversionary working interest may only transfer to the assignee if a specified condition, such as the expiration of a lease or the occurrence of a certain event, is met. These different types of assignments cater to the specific needs and objectives of the parties involved, allowing for flexibility in the transfer of diversionary working interests in Texas. It is important for both assignor and assignee to carefully review and understand the terms and conditions of the assignment before executing the document to ensure the effective transfer of a diversionary working interest while protecting their respective rights and interests.
