This form is used when an Assignor assigns, transfers, and conveys to Assignee an overriding royalty interest in the Lease and all of the oil and gas produced, saved and marketed from the Lease, out of the interest owned by Assignor, with proportionate reduction (the Override ).
A West Virginia Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction is a legal document that pertains to the assignment and related reductions of overriding royalty interests in the context of a single lease agreement. This document is commonly used in the field of oil and gas exploration and production. Keywords: West Virginia, Assignment of Overriding Royalty Interest, Single Lease, Proportionate reduction, oil and gas, exploration, production. In West Virginia, an Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction involves the transfer of a portion of the royalty interest from one party to another. It allows the assigning party to sell or transfer a certain percentage or portion of their royalty interest to another party, which can be an individual or a company. This type of assignment is essential in cases where the assigning party wants to monetize a portion of their royalty interest in the lease, potentially for financial reasons. The proportionate reduction aspect ensures that the assignment is carried out fairly, without excessively diluting the interests of the other parties involved. Different types of Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction may include: 1. Partial Assignment: This type of assignment involves transferring a specified percentage or fraction of the overriding royalty interest while retaining ownership of the remaining portion. 2. Outright Assignment: In this case, the assigning party fully transfers their entire overriding royalty interest to another party, thereby relinquishing all rights and ownership. 3. Temporary Assignment: This type of assignment allows for the transfer of overriding royalty interest for a specific period or until certain conditions are met. It may be useful in cases where the assigning party intends to regain ownership after a certain timeframe. 4. Permanent Assignment: Unlike a temporary assignment, a permanent assignment results in a permanent transfer of the overriding royalty interest to the assignee, with no intention of reacquiring ownership in the future. Overall, a West Virginia Assignment of Overriding Royalty Interest for Single Lease — Proportionate reduction plays a crucial role in facilitating the transfer of royalty interests, providing flexibility and financial opportunities to the parties involved in oil and gas leases. The inclusion of proportionate reduction ensures fairness while maintaining the integrity of the lease agreement.
