Wyoming Assignment of Overriding Royalty Interest (No Proportionate Reduction) is a legal document that allows the transfer of overriding royalty interests in Wyoming mineral rights without any reduction in proportionate share. This document is commonly used in oil and gas transactions and plays a crucial role in determining the rights and obligations of the parties involved. The Wyoming Assignment of Overriding Royalty Interest (No Proportionate Reduction) establishes the transfer of a specified percentage of the overriding royalty interest from the assignor to the assignee. This assignment ensures that the assignee receives their agreed-upon share of the royalties generated from the production of oil, gas, or other minerals from the designated property without any reduction in proportionate share. Some key components typically included in a Wyoming Assignment of Overriding Royalty Interest (No Proportionate Reduction) are: 1. Parties: The document identifies the parties involved in the assignment, namely the assignor (the current owner of the overriding royalty interest) and the assignee (the individual or entity acquiring the interest). 2. Property Description: A detailed and accurate description of the property subject to the overriding royalty interest is crucial to ensure clarity and avoid any future disputes regarding the boundaries or ownership. 3. Overriding Royalty Interest Percentage: The document specifies the exact percentage of the overriding royalty interest being transferred. This percentage represents the assignee's share of future royalties generated from the identified property. 4. Consideration: The consideration section outlines the value or compensation agreed upon by both parties for the assignment. This can be in the form of a lump sum payment, periodic payments, or other agreed-upon arrangements. 5. No Proportionate Reduction Clause: This clause is of utmost importance in this particular type of assignment. It ensures that the assignee will not suffer any reduction in their proportionate share of the overriding royalty interest, regardless of any future changes or dilution in the total royalty interest. Different types of Wyoming Assignment of Overriding Royalty Interest (No Proportionate Reduction) can arise based on the specific terms and conditions negotiated between the assignor and assignee. Some additional variations may include: 1. Partial Assignment: A partial assignment is when the assignor transfers only a portion of their overriding royalty interest to the assignee, keeping the remaining share. This allows the assignor to retain some involvement in the future production of the mineral rights. 2. Temporary Assignment: In certain cases, the overriding royalty interest may be assigned temporarily, giving the assignee the right to receive royalties for a specific period or until a predetermined condition is met. 3. Subordinate Assignment: A subordinate assignment implies that the assigned overriding royalty interest will be subject to the rights of other parties who hold primary or senior interests in the mineral property. This type of assignment provides the assignee with a lesser priority in receiving royalties. In conclusion, the Wyoming Assignment of Overriding Royalty Interest (No Proportionate Reduction) is a legal document that facilitates the transfer of overriding royalty interests in Wyoming mineral rights while safeguarding the assignee's proportionate share of future royalties. Its various types and clauses accommodate different scenarios and ensure the rights and obligations of both parties are clearly defined.
Wyoming Assignment of Overriding Royalty Interest (No Proportionate Reduction)
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FAQ
To calculate the number of net royalty acres I'm selling, I use this formula: [acres in tract] X [% of minerals owned] X 8 X [royalty interest reserved in lease] X [fraction of royalty interest being sold]. 640 acres X 25% X 8 X 1/4 X 1/2 = 160 net royalty acres.
You may convey overriding royalty interest on either an Assignment of Record Title Interest (Form 3000-3), a Transfer of Operating Rights (Form 3000-3a), or on a private assignment. We only require filing of one signed copy per assignment plus a nonrefundable filing fee found at 43 CFR 3000.12.
An overriding royalty interest (ORRI) is an undivided interest in a mineral lease giving the holder the right to a proportional share (receive revenue) of the sale of oil and gas produced. The ORRI is carved out of the working interest or lease.
ORRIs are created out of the working interest in a property and do not affect mineral owners. An overriding royalty interest (ORRI) is often kept or assigned to a geologist, landman, brokerage, or any entity that was able to reserve an interest in the properties.
However, unlike royalty and working interests, an overriding royalty interest cannot be fractionalized unlike royalty and working interests. The ORRI is a non-possessory, undivided right to a share of the oil and gas production, but it excludes the production costs of the mineral lease.
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, ...
An overriding royalty interest (ORRI) is an undivided interest in a mineral lease giving the holder the right to a proportional share (receive revenue) of the sale of oil and gas produced. The ORRI is carved out of the working interest or lease.