This form is used by the Owner to provide notice that the overriding royalty interests which are owned by Owners are to be merged into, combined with, and a part of Owners working interest, and the net revenue interest in production Owner is entitled to in all oil and gas produced from the Lands and Leases.
A Texas Notice of Merger of Working and Overriding Royalty Interests is a legal document used to inform parties involved in oil and gas leases about the consolidation or transfer of working interests and overriding royalty interests in Texas. This notice is typically filed with the appropriate governmental agency, such as the Texas Railroad Commission, to comply with state regulations. Working interests refer to an ownership stake in the exploration, production, and development of oil and gas resources. Working interest owners are responsible for bearing the costs associated with drilling, operating, and maintaining the lease. They also have the right to share in the profits generated from the production of oil and gas. Overriding royalty interests, on the other hand, grant a person or entity the right to receive a portion of the revenue generated from oil and gas production, usually without any responsibility for the associated costs. Overriding royalty interests are typically reserved by the lessor or conveyed separately from the working interest. There are different types of Texas Notice of Merger of Working and Overriding Royalty Interests, depending on the specific circumstances of the consolidation or transfer. Some common types include: 1. Merger of Working Interests: This type of notice is filed when two or more working interests in a lease are combined into a single interest. It outlines the details of the consolidation and specifies the new ownership structure. 2. Merger of Overriding Royalty Interests: When multiple overriding royalty interests are merged into one interest, a notice is filed to inform the interested parties. This notice outlines the specifics of the merger and the resulting ownership structure. 3. Transfer of Working Interests: In cases where the working interests are transferred from one party to another, a notice of transfer is filed. This document provides details about the transfer of ownership, including the parties involved and the effective date of the transfer. 4. Transfer of Overriding Royalty Interests: When overriding royalty interests are transferred, a notice of transfer is submitted. This notice specifies the details of the transfer, such as the parties involved, the royalty interest being transferred, and the effective date. These notices serve as important legal documentation to ensure transparency and compliance with Texas state laws in the oil and gas industry. They provide clarity about the ownership structure and help protect the rights and interests of all parties involved in the lease agreements.
