This form is used when, as a result of continuous production from the Lease and Lands, payout, as defined in an Assignment, has occurred, and Declarant is entitled to elect to convert the Override to a Working Interest, as provided for in the Assignment.
The Utah Declaration of Election to Convert Overriding Royalty Interest to Working Interest is a legal document that outlines the process by which an overriding royalty interest (ORRIS) can be converted to a working interest in the state of Utah. This declaration is typically used in the oil and gas industry and is crucial in determining the rights and responsibilities of both the interest holder and the operator. Utah has specific regulations and guidelines in place for converting an ORRIS to a working interest, and the declaration serves as a formal acknowledgement of the intent to convert. It includes essential details such as the names of the parties involved, the description of the ORRIS, the specific working interest to be acquired, and the effective date of the conversion. By electing to convert an ORRIS to a working interest, the interest holder becomes a working interest owner and assumes a share of the costs, risks, and benefits associated with the oil and gas operations. This conversion can significantly impact the financial and legal aspects of the agreement, highlighting the importance of this declaration. Different types of Utah Declarations of Election to Convert Overriding Royalty Interest to Working Interest may exist depending on the specific circumstances and preferences of the parties involved. Some possible variations could include declarations related to the transfer of ORRIS within a specific lease or declaration forms tailored to different industries or sectors within the oil and gas industry. These documents often contain keywords such as "Utah," "Declaration of Election," "Convert," "Overriding Royalty Interest," "Working Interest," "Oil and Gas," "Interest Holder," "Operator," "Conversion Process," "Legal Document," "Rights and Responsibilities," "Regulations," "Guidelines," "Agreement," "Financial Implications," and "Effective Date."
