This form is used when an Assignor transfers, assigns and conveys to Assignee an overriding royalty interest in all of the oil, gas, and other minerals produced, saved, and marketed from all of the Lands and Leases equal to a determined amount (the Override ), reserving the right to pool the assigned interest.
Vermont Assignment of Overriding Royalty Interest when Assignor Reserves the Right to Pool the Assigned Interest — Short Form is a legal document that outlines the transfer of an overriding royalty interest in an oil or gas lease in the state of Vermont. This type of assignment is commonly used when the assignor wishes to maintain the right to combine or "pool" the assigned interest with other oil or gas leases. The key elements of the Vermont Assignment of Overriding Royalty Interest when Assignor Reserves the Right to Pool the Assigned Interest — Short Form include: 1. Parties involved: The document will identify the assignor, who is the owner of the overriding royalty interest, and the assignee, who will receive the assigned interest. 2. Description of the overriding royalty interest: The assignment will provide a detailed description of the overriding royalty interest being transferred, including the specific lease or leases to which it is attached. 3. Reservation of the right to pool: The assignor reserves the right to pool the assigned overriding royalty interest with other leases. This means that the assignor can combine the interest with other leases in the same area to maximize production and economic efficiency. 4. Consideration: The assignment will specify the consideration, whether it is a monetary payment, future royalties, or other negotiated terms, that the assignee will provide in exchange for the assigned overriding royalty interest. 5. Assumed liabilities: The assignee typically assumes any liabilities or obligations associated with the assigned interest, such as payment of taxes, royalties, or any lease-related expenses. 6. Execution and effective date: The document will be signed and dated by both parties, with the effective date of the assignment specified. Variations of the Vermont Assignment of Overriding Royalty Interest when Assignor Reserves the Right to Pool the Assigned Interest — Short Form may exist based on specific circumstances or requirements. Some examples include: 1. Supplemental Agreement for Pooling: This additional form clarifies and supplements the assignment, providing more detailed provisions on how the reserved right to pool will be exercised in practice. 2. Assignment with Diversionary Interest: In this case, the assignor transfers the overriding royalty interest to the assignee temporarily, while also retaining the right to regain ownership of the interest at a future date or upon certain conditions. 3. Assignment of Overriding Royalty Interest with Partial Pooling Rights: This variation grants the assignor the right to pool the assigned interest with some leases while still maintaining the option to keep other leases separate. In conclusion, the Vermont Assignment of Overriding Royalty Interest when Assignor Reserves the Right to Pool the Assigned Interest — Short Form is a legally binding document that facilitates the transfer of overriding royalty interests in oil or gas leases while allowing the assignor to retain the right to combine the assigned interest with other leases. Various types of this assignment may exist to accommodate specific situations or preferences.
