This provision provides for the assignor to except from this assignment and reserve an overriding royalty interest of all oil, gas, casinghead gas, and other minerals that may be produced from the lands under the terms of the Leases that are the subject of this assignment.
Utah Reservation of Overriding Royalty Interest (LORI) is a legal term often used in the oil and gas industry. It refers to a specific type of interest or reservation that gives the granter the right to receive a certain percentage of the oil and gas production revenues from a particular property or lease in Utah. This interest is separate from any other mineral rights or royalty interests associated with the property. The Utah Reservation of Overriding Royalty Interest is typically created through a written agreement between the granter (often the landowner) and a third party, such as an oil and gas company. The agreement specifies the percentage of production revenues the granter is entitled to receive, and the duration of the interest. The LORI can be perpetual or have a limited term. Keywords: Utah, Reservation of Overriding Royalty Interest, oil and gas industry, property, lease, granter, mineral rights, royalty interests, agreement, production revenues, landowner, third party, interest duration, perpetual, limited term. There are different types of Utah Reservation of Overriding Royalty Interest, depending on the specific details and terms outlined in the agreement: 1. Perpetual LORI: This type of interest lasts indefinitely, meaning the granter continues to receive a percentage of the production revenues for as long as oil and gas extraction occurs on the property. 2. Limited Term LORI: In this case, the interest has a predetermined duration, after which it will expire. The specified timeframe can vary, ranging from a few years to several decades. Once the term ends, the granter will no longer receive a share of the production revenues. It is important to note that the specific terms and conditions of the Utah Reservation of Overriding Royalty Interest agreement can vary depending on the negotiations between the granter and the third-party company. Therefore, it is crucial for both parties to carefully review and understand the written agreement to ensure their rights and obligations are properly documented and protected. In conclusion, the Utah Reservation of Overriding Royalty Interest is a legally binding agreement that grants a certain percentage of oil and gas production revenues to the granter, separate from other mineral rights or royalty interests. Depending on the agreement, the LORI can be perpetual or have a limited term, offering different benefits and considerations for both parties involved.
