The form is used when the Assignor transfers, assigns, and conveys to Assignee an overriding royalty interest in the Leases and all of the oil, gas and other minerals produced, saved and marketed from the Lease equal to a pecentage of 8/8 (the Override ).
A Utah Assignment of Overriding Royalty Interest (ORRIS) by the ORRIS Owner refers to the transfer of rights to receive a portion of the revenue from oil and gas production from the ORRIS owner to another party. In this transaction, no proportionate reduction is made to the ORRIS, meaning that the assigned interest remains intact without any reduction in the ownership percentage. The ORRIS is a type of royalty interest that is separate from the mineral rights' ownership. It entitles the ORRIS owner to a portion of the revenue generated from the production of oil and gas on a specific property or lease. The ORRIS may be created as a separate interest when the mineral rights' owner leases the rights to an exploration and production company. The Utah Assignment of Overriding Royalty Interest reflects the transfer of the ORRIS ownership by the current owner to another party. The assignment document details the specific terms and conditions of the transfer, such as the effective date, assignment fee, and any additional rights or obligations. This legal document ensures that the new owner is properly recognized as the recipient of the assigned ORRIS. In some cases, there may be different variations or classifications of the Utah Assignment of Overriding Royalty Interest that provide additional details or conditions. Examples include: 1. Utah Assignment of Overriding Royalty Interest with Limited Proportionate Reduction: This type of assignment includes a proportionate reduction in the ORRIS percentage, meaning that the assigned interest will be reduced proportionally upon transfer. 2. Utah Assignment of Overriding Royalty Interest with Proportionate Reduction: In this case, the assigned ORRIS is subject to a proportionate reduction, resulting in a decrease in the ownership percentage based on the transfer. 3. Utah Assignment of Partial Overriding Royalty Interest: This assignment involves the transfer of only a portion of the ORRIS ownership, allowing the ORRIS owner to retain a percentage while assigning the remaining interest to another party. It is essential for both the ORRIS owner and the assignee to carefully review and understand the terms and conditions of the Utah Assignment of Overriding Royalty Interest, as it affects their respective rights and obligations related to royalty payments and revenue distributions. Consulting with legal professionals experienced in oil and gas transactions is crucial to ensuring a smooth and legally valid assignment process.
