Assignment of Overriding Royalty Interest (Non-Producing, Single Lease, Reserves Right to Pool)
About this form
This Assignment of Overriding Royalty Interest is a legal document used to assign a non-producing overriding royalty interest in a specific oil, gas, and mineral lease. Unlike other royalty agreements, this form specifically pertains to leases that are not currently producing resources, thus addressing distinct legal considerations and obligations. It ensures that the assigned royalty interest can be pooled with other leases, which may influence the overall resource development strategy.
Main sections of this form
- Identification of Assignor and Assignee, including names and addresses
- Effective date of the assignment
- Description of the oil, gas, and mineral lease involved, including the specific location
- Details of the overriding royalty interest being assigned, including the percentage
- Provisions regarding taxes and potential pooling of the lease
- Conditions under which the assignment is made without warranty of title
Situations where this form applies
This form is used when the owner of a non-producing oil, gas, or mineral lease wishes to transfer an overriding royalty interest to another party. It is applicable in scenarios where the lease is held but does not currently yield production. Additionally, it is relevant when the owner intends to allow for the possibility of pooling with other leases to maximize resource extraction opportunities.
Intended users of this form
This form is suitable for:
- Property owners of non-producing oil, gas, and mineral leases looking to assign interests
- Investors interested in acquiring overriding royalty interests in specific leases
- Legal professionals facilitating the transfer of royalty interests on behalf of clients
How to prepare this document
- Identify and enter the names and addresses of the Assignor and Assignee.
- Specify the effective date of the assignment.
- Provide a detailed description of the lease and the lands covered by it.
- Indicate the percentage of the overriding royalty interest being assigned.
- Review the terms regarding pooling and taxes to ensure clarity and compliance.
- Sign and date the document in the presence of required witnesses, if necessary.
Notarization guidance
This form must be notarized to be legally valid. US Legal Forms provides secure online notarization powered by Notarize, allowing you to complete the process through a verified video call.
Get your form ready online
Our built-in tools help you complete, sign, share, and store your documents in one place.
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.
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.
Mistakes to watch out for
- Failing to provide accurate names or addresses for the Assignor and Assignee
- Neglecting to describe the lease and lands thoroughly
- Not specifying the correct percentage of the overriding royalty interest
- Overlooking the conditions regarding taxes and pooling provisions
- Forgetting to sign or date the assignment
Why complete this form online
- Easy access to a legally drafted document by licensed attorneys
- Immediate download and editing capabilities to meet individual needs
- Convenient completion from anywhere, saving time on legal consultations
Looking for another form?
Form popularity
FAQ
A Non-Participating Royalty Interest (NPRI) is an interest in oil and gas production which is created from the mineral estate. Like the plain royalty interest it is expense-free, bearing no operational costs of production.
Net revenue is the amount that is shared among the property owners. To determine net revenue interest, multiply the royalty interest by the owner's shared interest. For example, if you have a 5/16 royalty, your net royalty interest would be 25% multiplied by 5/16, which equals 7.8125% calculated to four decimal places.
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.
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.
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 gross overriding royalty can be created on a mine which produces a product like petroleum in that it can be sold without alteration of its basic character.The costs of smelting and refining the gold will reduce the proceeds to the mine owner, a percentage of which will be paid as royalty.
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.
