The form is used when the Assignor transfers, assigns, and conveys to Assignee an overriding royalty interest in the Leases and all of the oil, gas and other minerals produced, saved and marketed from the Lease equal to a pecentage of 8/8 (the Override ).
A Wisconsin Assignment of Overriding Royalty Interest (ORRIS) refers to a legal document that transfers the rights to receive a percentage of the oil and gas production royalties from one party, known as the Overriding Royalty Interest Owner, to another party. It is important to note that this type of assignment does not involve a proportionate reduction in the owner's original ORRIS. The Wisconsin Assignment of Overriding Royalty Interest carries significant importance in the oil and gas industry, particularly in relation to drilling operations on specific properties or leases. The Overriding Royalty Interest Owner, desiring to monetize their interest or diversify their investment, can transfer their ORRIS to another party through the execution of this assignment. Wisconsin's law recognizes different types of Assignments of Overriding Royalty Interest. One type involves a complete and permanent transfer of all rights and interests, known as an Absolute Assignment. Under an Absolute Assignment, the Overriding Royalty Interest Owner surrenders their rights to the assigned ORRIS, including any future benefits. Another type of Assignment of Overriding Royalty Interest is a Partial Assignment. As the name suggests, a Partial Assignment allows the ORRIS Owner to transfer only a portion of the interest they hold, while retaining a certain percentage for themselves. The Wisconsin Assignment of Overriding Royalty Interest typically outlines key information such as the effective date, the assignment parties' details including their legal names and addresses, a precise description of the ORRIS being assigned, and the consideration provided by the assignee (the party receiving the interest). Furthermore, the document may include specific provisions addressing the consequences of a failure to produce oil and gas, the legality of the assignment, governing law, and dispute resolution mechanisms. The assignment may also include clauses defining the rights and obligations of both parties during the term of the agreement, especially concerning revenue distribution and confidentiality. In conclusion, a Wisconsin Assignment of Overriding Royalty Interest transfers the rights to receive a portion of the oil and gas production royalties from one party to another. It is crucial that both parties involved thoroughly review and understand the terms and conditions outlined in this legal document to protect their interests and ensure a successful transaction.
