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US Legal Forms
Localized Forms
Tennessee
Memphis
Assignment of Overriding Royalty Interest by Working Interest Owner...

Memphis Tennessee Assignment of Overriding Royalty Interest by Working Interest Owner, Single Lease, Stated Percentage

Category:

Oil Gas and Minerals - Assignments

State:

Multi-State

City:

Memphis

Control #:

US-OG-287

Format:

Word;

Rich Text

Instant download

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Description

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.

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Interesting Questions

Are there any risks involved with overriding royalty interests?

Yes, there are risks. If production drops or costs rise significantly, the income from the overriding royalty interest can go down too. It's like any investment; the returns can be uncertain.

What rights does an owner with overriding royalty interest have?

An owner with overriding royalty interest has the right to a share of the production revenues without being responsible for the costs of drilling or operating the wells. It's a sweet spot if you want a piece of the action without the heavy lifting.

Can the overriding royalty interest be transferred or sold?

Yes, an overriding royalty interest can usually be sold or transferred, just like any other property right, as long as the assignment terms allow it.

What does 'stated percentage' mean in this context?

The 'stated percentage' refers to the exact portion of the revenue that will go to the overriding royalty interest holder, like a slice of the pie from the lease profits.

How does an assignment work in a single lease?

In a single lease, an assignment involves the working interest owner passing along a portion of their revenue rights to another party. This is usually laid out in a written agreement to make everything clear.

Who can assign an overriding royalty interest?

Typically, a working interest owner can assign an overriding royalty interest. They are the folks who own and operate the lease, so they have the authority to pass on some of their revenue rights.