Virgin Islands Assignment of Overriding Royalty Interest for a Term of Years: A Comprehensive Overview: A Virgin Islands Assignment of Overriding Royalty Interest for a Term of Years is a legal document that allows the transfer of an overriding royalty interest in the Virgin Islands mineral rights from one party to another for a specific period. This assignment grants the assignee the right to receive a specified portion of the revenue generated from the production of minerals, typically oil and gas, within the assigned area. In the Virgin Islands, several types of Assignment of Overriding Royalty Interest for a Term of Years exists, including: 1. Oil and Gas Assignment of Overriding Royalty Interest: This type of assignment applies specifically to oil and gas exploration and production activities in the Virgin Islands. It allows the assignee to receive a percentage of the gross revenue generated from the sale of oil and gas from the assigned area for a predetermined period, typically ranging from five to twenty years. 2. Mining Assignment of Overriding Royalty Interest: In cases where the mineral rights involve mining operations, a Mining Assignment of Overriding Royalty Interest for a Term of Years is used. This assignment allows the assignee to receive a specified share of the income generated from the extraction and sale of minerals within the designated area for a fixed duration. 3. Renewable Energy Assignment of Overriding Royalty Interest: With the growing focus on renewable energy sources, there is a need for assignments that cover the development and utilization of renewable energy in the Virgin Islands. This assignment facilitates the transfer of an overriding royalty interest in relation to renewable energy projects such as wind farms, solar power plants, or geothermal installations. The assignee is entitled to a percentage of the revenue generated from the production and sale of renewable energy within the assigned area for a specified term. Key Components of a Virgin Islands Assignment of Overriding Royalty Interest: 1. Parties Involved: The assignment will clearly identify the assignor (the current owner of the overriding royalty interest) and assignee (the new recipient) involved in the transfer. 2. Description of Mineral Rights: The assignment will include a detailed description of the specific mineral rights and the assigned area that falls within the Virgin Islands territory. 3. Term of Years: The assignment will outline the duration of the assignment, specifying the number of years it will remain valid. This term can vary depending on the agreement between the parties involved. 4. Royalty Percentage: The assignment will establish the percentage of the gross revenue that the assignee will receive from the production and sale of minerals within the assigned area. 5. Conditions and Considerations: The assignment may include additional conditions, such as development obligations, environmental considerations, or financial considerations, that must be met by the assignee during the assigned term. Conclusion: In the Virgin Islands, an Assignment of Overriding Royalty Interest for a Term of Years provides a means of transferring mineral rights for a specified period, allowing the assignee to benefit from the revenue generated through the exploration and production of minerals. Whether it pertains to oil and gas exploration, mining operations, or renewable energy projects, these assignments play a crucial role in facilitating the effective utilization of the Virgin Islands' natural resources.
Virgin Islands Assignment of Overriding Royalty Interest For A Term of Years
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Overriding Royalty Interest Example The mineral estate can be severed from the surface, beginning two separate chains of title. The mineral owner has the right to explore and develop the minerals, but the vast majority do not have the finances or knowledge to drill and operate a well.
There are three main types of royalty interests: Overriding royalty interest: Unlike mineral and royalty interests, an overriding royalty interest runs with a lease and not with the land. Therefore, they only remain in effect for as long as a lease is in effect and they expire when a lease expires.
How to calculate the overriding royalty interest? ORRI = NRI * 5 percent. $750,000 * 0.005 = $3,750.
What Determines the Value of an Overriding Royalty Interest? Mineral interest location. One in a shale basin with high production is worth more. Producing oil and gas wells. Wells currently producing are valued more. ... Production reserves and levels. ... Prices.
Overriding Royalty Interest: A given interest severed out of the record title interest or lessee's share of the oil, and not charged with any of the cost or expense of developing or operation. The interest provides no control over the operations of the lease, only revenue from lease production.
Overriding Royalty Interest Conveyance means an assignment, in form and substance acceptable to Lender, pursuant to which Borrower grants in favor of Lender an overriding royalty interest equal to six and one-fourth percent (6.25%) of Hydrocarbons produced, saved and sold or used off the premises of the relevant Lease, ...
If at any time Assignee desires to transfer or dispose of all or any portion of the Overriding Royalty Interest, Assignee must first give to Assignor written notice thereof stating: (a) the amount of the Overriding Royalty Interest offered by Assignee; (b) the form of consideration (which shall be either cash or a ...
