This form is used when an Assignor was granted the right to receive, at payout, a certain reversionary working interest in the Lease. Payout has not occurred, and Assignor is vested with beneficial ownership of the Interest in the Leases and Lands. The purpose of this Assignment and the intention of Assignor is to assign to Assignee, the Interest.
A West Virginia Assignment of a Diversionary Working Interest is a legal document used in the oil and gas industry to transfer the rights and interests in a working interest in an oil and gas lease back to the original lessor. This document is essential in cases where the lessee wishes to release their interest in a leasehold due to various reasons such as financial constraints, strategic planning, or termination of operations. The Assignment of a Diversionary Working Interest in West Virginia provides a mechanism for the reversion of the working interest to the lessor, who originally granted the lease to the lessee. This process is typically triggered when certain conditions are met, such as expiration of the primary term of the lease, failure to produce in paying quantities, abandonment, or any other agreed-upon triggering event outlined in the lease agreement. There are several types of Assignment of a Diversionary Working Interest that may be encountered in West Virginia, including: 1. Post-Primary Term Assignment: This type of assignment occurs when the primary term of the lease has expired, and the lessee voluntarily relinquishes their working interest back to the lessor. The lessor then regains full control and ownership over the leasehold. 2. Dry Hole Assignment: In this type of assignment, the lessee has drilled a well on the leased property but failed to discover any commercially viable quantities of oil or gas. As a result, the lessee may choose to assign their working interest back to the lessor. 3. Non-Producing Assignment: If the lessee fails to produce oil or gas in quantities sufficient to satisfy the lease's requirements for a specific period, they may assign their working interest back to the lessor. This assignment ensures that the lessor can explore alternative options for the property's development. 4. Termination Assignment: A termination assignment occurs when the lessee decides to cease all operations on the leased property willingly. This can be due to financial constraints, changing business strategies, or other reasons that make it unfeasible for the lessee to continue activities. The assignment of the diversionary working interest allows the lessor to regain control of the leasehold and pursue other opportunities. It is important to consult with an attorney or legal professional familiar with West Virginia laws and regulations before executing an Assignment of a Diversionary Working Interest. This document should be drafted carefully to safeguard the rights and interests of both parties involved.
