Washington Assignment of Overriding Royalty Interest with Proportionate Reduction is a legal document used in the state of Washington to transfer or assign a portion of the overriding royalty interest (ORRIS) from one party to another. This assignment may involve a proportionate reduction in the assigned interest to maintain the overall balance and proportionality of the ORRIS. The overriding royalty interest refers to a share or portion of the oil, gas, or mineral production that is separate from the working interest. It is usually held by a party that is not directly involved in the exploration or operation of the mineral lease, but is entitled to a certain percentage of the production revenues. The Washington Assignment of Overriding Royalty Interest with Proportionate Reduction is commonly used in the oil and gas industry to facilitate the transfer of ORRIS between individuals, companies, or entities. This assignment allows the assignor (the party transferring the ORRIS) to convey a specific portion of their ORRIS to the assignee (the receiving party), while also adjusting or proportionately reducing the remaining ORRIS to maintain an equitable distribution. Keywords: Washington, Assignment, Overriding Royalty Interest, Proportionate Reduction, Legal Document, Transfer, Assignor, Assignee, Oil, Gas, Mineral Production, Working Interest, Exploration, Operation, Lease, Revenues, Industry, Equitable Distribution. Other types of Washington Assignment of Overriding Royalty Interest with Proportionate Reduction may include: 1. Assignment with Partial Proportionate Reduction: This refers to a scenario where the assignor transfers a portion of their overriding royalty interest but keeps a reduced share to maintain an ongoing interest in the mineral lease. 2. Assignment with Full Proportionate Reduction: In this type, the assignor completely transfers all of their overriding royalty interest, resulting in a proportionate reduction of their original share to zero. 3. Assignment with Cross-Conveyance: This variation involves multiple parties simultaneously exchanging or transferring their overriding royalty interests with proportionate reductions. It allows for a redistribution of ORRIS shares among the involved parties. 4. Assignment with Reservation of Rights: This type allows the assignor to transfer a portion of their overriding royalty interest while reserving certain rights or privileges, such as the right to receive future mineral lease bonuses or development royalties. By using the Washington Assignment of Overriding Royalty Interest with Proportionate Reduction, parties can efficiently transfer or assign their interests while maintaining the fairness and integrity of the ORRIS system in the state of Washington.
Washington Assignment of Overriding Royalty Interest with Proportionate Reduction
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How to fill out Assignment Of Overriding Royalty Interest With Proportionate Reduction?
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FAQ
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, ...
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.
How to calculate the overriding royalty interest? ORRI = NRI * 5 percent. $750,000 * 0.005 = $3,750.
ORRIs are created out of the working interest in a property and do not affect mineral owners. An overriding royalty interest (ORRI) is often kept or assigned to a geologist, landman, brokerage, or any entity that was able to reserve an interest in the properties.
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.
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 ...
An overriding royalty interest (ORRI) is an interest carved out of a working interest. It is: A percentage of gross production that is not charged with any expenses of exploring, developing, producing, and operating a well.
