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Georgia
Atlanta
Assignment of Oil and Gas Leases with Reservation of Overriding...

Atlanta Georgia Assignment of Oil and Gas Leases with Reservation of Overriding Royalty Interest Before Payout, and A Back-In Working Interest After Payout

Category:

Oil Gas and Minerals - Assignments

State:

Multi-State

City:

Atlanta

Control #:

US-OG-279

Format:

Word;

Rich Text

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Description

This form is used by the Assignor to transfer, assign, and convey to Assignee all of Assignor's interest in a Lease reserving a before Payout overriding royalty interest.

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Interesting Questions

Is it common to see these types of leases in Atlanta, Georgia?

Yes, oil and gas leases with such reservations are fairly common in Georgia, especially in regions with active exploration and production, making it a hot spot for interested landowners.

Can someone have both an overriding royalty interest and a back-in working interest?

Yes, someone can hold both interests, enjoying the benefits of a royalty upfront and then sharing in profits after costs are covered, but it does involve some complexities.

What should landowners consider before entering such leases?

Landowners should think about the potential risks and rewards, do their homework on the oil company, and perhaps consult an expert to avoid any pitfalls down the line.

Are overriding royalties considered a guarantee of income?

Not quite. While overriding royalties can boost potential revenue, they depend on the performance of the well, so it's a bit of a gamble at the end of the day.

What does 'before payout' mean in this context?

'Before payout' refers to the period when the lessee has not yet recouped their initial investment. Until they do, the landowner receives their share of royalties right away.

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Atlanta Georgia Assignment of Oil and Gas Leases with Reservation of Overriding Royalty Interest Before Payout, and A Back-In Working Interest After Payout

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