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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.
Local laws in Kentucky govern how ORRIs are created and assigned. It’s important to stay savvy about these regulations, or you might find yourself lost in the fine print!
Yes, there can be risks. If the well doesn't produce oil or gas, that pie may not get baked at all. It’s a bit of a gamble, like betting on a horse race.
Absolutely! Just like trading baseball cards, ORRI can be bought, sold, or assigned to anyone interested in collecting that revenue slice.
The stated percentage indicates the portion of revenue the ORRI holder receives. For example, if the stated percentage is 10%, they get 10% of the production value—easy as pie!
A single lease refers to one specific property where the oil or gas rights are held. It’s crucial because the terms of that lease dictate how profits and royalties are shared.
When a working interest owner assigns their overriding royalty interest, they're transferring their right to receive a portion of the production revenue to another party. Think of it as passing the baton in a relay race.
An overriding royalty interest is a cut of the production revenue from an oil or gas lease, which is not tied to the working interest. It’s like getting a slice of the pie without having to bake it yourself!
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Louisville Kentucky Assignment of Overriding Royalty Interest by Working Interest Owner, Single Lease, Stated Percentage