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This form is used by the Assignor to transfer, assign, and convey to Assignee an overriding royalty interest in a Lease and all oil, gas and other minerals produced, saved and sold from the Lease and Land.
If the lease is terminated, the ORI usually ends too. It's as if the party's over, and everyone needs to pack up and go home because the music has stopped!
Yes, an overriding royalty interest can be sold or transferred just like any other piece of property. It's like trading baseball cards; you can swap your cards with someone else who wants what you've got!
The holder of an ORI has the right to receive payment for their share of the production revenue, but they don't have a say in the operations. It's like being a silent partner in a business—you reap the rewards without rolling up your sleeves.
The stated percentage is generally negotiated between the parties involved. It's like haggling over how much of the chocolate cake you want—everyone has their own idea of a fair share!
A 'single lease' refers to a specific agreement or contract that permits the extraction of resources from a designated area. It's like having a rental agreement for a piece of land where you can dig for treasures!
Typically, it's the working interest owner who can assign an ORI. Think of them as the main chefs in the kitchen who can hand out portions of their delicious dish to others.
An overriding royalty interest (ORI) is like a slice of the pie that pays out from the production of oil and gas, excluding costs. If you own an ORI, you get a share of the revenue without worrying about the expenses involved.