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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.
Yes indeed! There can be risks, such as the potential for decreased revenues if the lease doesn't perform as expected. It’s important to do your homework before diving into an assignment.
Assigning an ORRI is a smart move; it can help raise some capital while still keeping a foot in the door regarding ownership and potential profits from the lease.
Absolutely! Negotiating the Stated Percentage is just like haggling at a market; you can advocate for a fair share based on the lease's potential.
The 'Stated Percentage' is the specific portion or fraction of the gross production that is designated for the overriding royalty interest; it determines how much of the profits you can reap.
A Single Lease refers to a specific agreement for the exploration and production of minerals on a defined piece of land, where the terms about royalty interests are laid out.
Typically, it's the working interest owner who can assign an Overriding Royalty Interest to another party, like an investor or partner, allowing them to earn a share of the production revenue.
An Assignment of Overriding Royalty Interest (ORRI) is when a working interest owner transfers certain rights to receive royalties from oil and gas production without giving up their ownership of the lease.