Partial Release of Lien on Assigned Overriding Royalty Interest
About this form
The Partial Release of Lien on Assigned Overriding Royalty Interest is a legal document that allows a lienholder to relinquish their rights and claims under a Mortgage or Deed of Trust for a specific undivided overriding royalty interest assigned to another party. This form is essential for clarifying which rights remain with the lienholder and ensuring that the assignee has clear ownership of the royalty interest, distinguishing it from full releases or other types of liens.
Main sections of this form
- Identification of the lienholder and mortgagor/grantor.
- Effective date of the release.
- Details of the original Mortgage or Deed of Trust, including recording information.
- Description of the assigned overriding royalty interest.
- Statement of the lienholder's intent to release their claims on the specified interest.
- Signature line for the lienholder.
When this form is needed
This form is used when a lienholder releases their claim on a specific portion of an overriding royalty interest that has been assigned to another party. It is necessary in transactions where the mortgagor or grantor wishes to assign a portion of their royalty interests, and the lienholder needs to formally acknowledge the release of their claim to facilitate the transaction.
Intended users of this form
- Lienholders, needing to release their claim on a specific royalty interest.
- Mortgagors or grantors who are assigning royalty interests to an assignee.
- Assignees who require proof of clear ownership of the royalty interest.
- Real estate professionals involved in royalty interest transactions.
Steps to complete this form
- Identify the parties involved by entering the lienholder's and mortgagor/grantor's names and addresses.
- Specify the effective date of the release.
- Complete the details regarding the original Mortgage or Deed of Trust, including the date and recording information.
- Describe the lands associated with the royalty interest and include the assigned fractional or percentage interest.
- Ensure the lienholder signs the document, indicating the relinquishment of their claims.
Is notarization required?
To make this form legally binding, it must be notarized. Our online notarization service, powered by Notarize, lets you verify and sign documents remotely through an encrypted video session.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Typical mistakes to avoid
- Failing to include the effective date, which can lead to confusion about when the release takes effect.
- Not providing complete descriptions of the lands or the assigned royalty interest.
- Leaving out necessary signatures from the lienholder or improperly executing the document.
- Using an incorrect version of the form that does not comply with state requirements.
Why complete this form online
- Convenience of downloading and completing the form at your own pace.
- Editability to tailor the document to your specific needs.
- Reliability of ensuring the form is prepared with the appropriate legal language and requirements.
Legal use & context
- This form provides a clear record of the release of lien, protecting the interests of both the lienholder and the assignee.
- Properly executed, this form can help prevent future disputes over rights to the overriding royalty interest.
What to keep in mind
- The Partial Release of Lien is essential for transactions involving assigned royalty interests.
- Clear documentation aids in protecting all parties' rights.
- Ensure all details are accurate and complete when filling out the form.
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FAQ
The value of an overriding royalty interest is simple to calculate since it is a percent of the working interest lease. The ORRI value is based on production on the acreage leased by the working interest.
A stipulation of interest is a contract that consists of mutual conveyances, and therefore, it must conform to the requirements of both a contract and conveyance.This requires the affiant to state all facts necessary to establish inheritance of a decedent's real estate as well as proportional interest.
An overriding royalty interest generally entitles the owner of the interest to a specified share of the oil and gas produced under the terms of the lease. In Texas and in many other oil-producing states, overriding royalty interests are generally treated as interests in real estate.
A royalty interest is a non-possessory real property interest in oil and gas production free of production and operating expenses, which may be created by grant or by reservation or exception.
The royalty mineral owner retains ownership of the interest after production stops. Holders of overriding royalty interests have no ownership rights to the minerals under the ground but a non-possessory undivided interest.
Overriding Royalty Interest (ORRI) a percentage share of production, or the value derived from production, which is free of all costs of drilling and producing, and is created by the lessee or working interest owner and paid by the lessee or working interest owner.
An overriding royalty interest is the right to receive revenue from the production of oil and gas from a well. The overriding royalty is carved out of the lessee's (operator's) working interest and entitles its owner to a fraction of production.
Royalty Interest an ownership in production that bears no cost in production. Royalty interest owners receive their share of production revenue before the working interest owners. Working Interest an ownership in a well that bears 100% of the cost of production.
