This form is used when an Assignor assigns, transfers, and conveys to Assignee an overriding royalty interest in the Lease and all of the oil and gas produced, saved and marketed from the Lease, out of the interest owned by Assignor, with proportionate reduction (the Override ).
In Utah, an Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is a legal document that allows a party to transfer their royalty interest in an oil or gas lease to another party. This type of assignment typically involves a proportionate reduction of the overriding royalty interest and is applicable to single leases in the state of Utah. An overriding royalty interest is a share of the revenue generated from oil or gas production, which is separate from the landowner's royalty interest. It is often granted to a third party, such as an oil and gas company or an investor, as compensation for their services, expertise, or financial support. The Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction outlines the details of the transfer, including the names and addresses of both the assignor (the party transferring the interest) and the assignee (the party receiving the interest). It also specifies the portion of the overriding royalty interest being transferred and any other terms or conditions agreed upon by both parties. In Utah, there may be different types of Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction, including: 1. Partial interest assignment: This type of assignment involves the transfer of only a portion of the overriding royalty interest. For example, the assignor may transfer 50% of their interest to the assignee. 2. Temporary assignment: This type of assignment grants the assignee temporary rights to the overriding royalty interest for a specified period. The assignor still retains ownership but allows the assignee to receive the benefits during the agreed-upon timeframe. 3. Permanent assignment: A permanent assignment involves the complete transfer of the overriding royalty interest to the assignee. The assignor no longer holds any rights or benefits associated with the interest. 4. Percentage-based assignment: In some cases, the assignment may be based on a specific percentage of production revenue rather than a fixed amount. This type of assignment allows for flexibility in determining the assignee's benefits based on market conditions or other factors. It is important for both parties to carefully review the terms of the Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction before signing. Consulting with legal professionals familiar with Utah's oil and gas laws can help ensure that the assignment is properly executed and protects the interests of both parties involved.
