A West Virginia Assignment of Overriding Royalty Interests in Multiple Leases refers to a legal document that allows an individual or entity to transfer their ownership or rights to overriding royalty interests associated with multiple oil and gas leases in the state of West Virginia. This assignment is commonly used in the energy industry when parties want to transfer their interests in these leases to another party. The process of assigning overriding royalty interests involves transferring the right to receive a percentage of the revenue generated from the production of oil and gas on the leased land. This percentage is typically calculated based on the gross production and does not require the assignee to bear any of the associated costs or liabilities. The assignment allows the assignee to collect the revenue generated from the leases for the specified period or until other conditions specified in the agreement are met. There are different types of West Virginia Assignment of Overriding Royalty Interests in Multiple Leases that can be categorized based on various factors, including duration, assignment terms, and specific conditions. Some common types include: 1. Temporary Assignment: This type of assignment is valid for a specific duration, typically for a fixed number of years. It allows the assignee to collect the overriding royalty interests in the specified period, after which the rights revert to the assignor. 2. Permanent Assignment: In this case, the assignor permanently transfers their overriding royalty interests to the assignee, relinquishing all rights to future revenue from the leases. This type of assignment is typically done for a predetermined sum of money or other considerations agreed upon by both parties. 3. Conditional Assignment: Sometimes, an assignment may be subject to certain conditions or milestones. For instance, the assignee may be required to reach a certain production volume or meet specific performance criteria to maintain ownership of the overriding royalty interests. Failure to meet these conditions could result in the rights reverting to the assignor. 4. Partial Assignment: This type of assignment involves transferring only a portion of the assignor's overriding royalty interests to the assignee. The assignor retains ownership of the remaining interests and continues to receive a percentage of the revenue from the leases. It's important to note that each assignment is unique and can be tailored based on the specific needs and negotiations between the parties involved. Legal counsel is often engaged to ensure that the assignment complies with all necessary legal requirements and safeguards the interests of both parties.
West Virginia Assignment of Overriding Royalty Interests for Multiple Leases
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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, ...
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 ...
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.
There are three main types of royalty interests: 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.
What Determines the Value of an Overriding Royalty Interest? Mineral interest location. One in a shale basin with high production is worth more. Producing oil and gas wells. Wells currently producing are valued more. ... Production reserves and levels. ... Prices.