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 West Virginia Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner with No Proportionate Reduction is a legal document that transfers or assigns the rights of an overriding royalty interest (ORRIS) from one party to another without a proportionate reduction in the interest. The ORRIS is a type of royalty interest that is carved out of the working interest in an oil, gas, or mineral lease. It grants the owner of the overriding royalty interest the right to receive a portion of the revenues generated from the production of minerals from the leased property, without having any obligations for operating expenses. In West Virginia, there are several types of Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner, No Proportionate Reduction that vary based on the specific details of the transaction. These types include: 1. Absolute Assignment: This type of assignment involves the complete transfer of the ORRIS from the current owner to a new owner without any reduction in interest. Both parties must execute the assignment agreement, and it must be properly recorded with the appropriate government agency to ensure its validity. 2. Partial Assignment: In some cases, the overriding royalty interest owner may choose to assign only a portion of their interest to another party. This could be done for various reasons, such as to raise capital or to diversify their investment portfolio. The assignment agreement will specify the exact percentage or fraction of the ORRIS being assigned. 3. Temporary Assignment: A temporary assignment of an overriding royalty interest may be executed when the current owner wants to transfer their rights to another party for a specific period. This type of assignment is often seen in cases where the original owner expects a temporary interruption in the production or wants to explore alternative investment opportunities. 4. Assignment with Reserved Interest: A party with an ORRIS can also choose to assign the interest to another party while reserving certain rights for themselves. For example, the current owner may assign the right to receive royalty payments but retain the right to consent or participate in certain decisions regarding the leased property, such as lease modifications or lease renewals. When executing a West Virginia Assignment of Overriding Royalty Interest in Overriding Royalty Interest Owner with No Proportionate Reduction, it is crucial to ensure that the agreement includes all relevant details, such as the mineral lease's legal description, specific overriding royalty interest being assigned, the consideration or payment for the assignment, effective date, and any conditions or obligations associated with the assignment. By executing this assignment, the overriding royalty interest owner can transfer their right to receive royalty payments to another party without a proportionate reduction and enjoy the financial benefits or other advantages of such a transaction.
