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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, overriding royalty interests are transferable! Like passing a baton in a relay race, owners can sell or assign their interests to someone else if they wish.
The stated percentage is often a negotiated number based on agreement between the parties involved. It's kind of like haggling at a market until everyone feels good about the deal!
A single lease refers to a specific agreement covering one parcel of land for oil and gas exploration. It's like having a lease on just one plot of your land rather than a whole neighborhood.
Not quite! While a working interest gives you a say in operations and a share of the profits and costs, an overriding royalty interest is all about profit with no strings attached to operations or expenses.
Typically, it's the working interest owner who can pass on this interest. They hold the operational responsibilities and can decide to share a piece of their earnings with someone else.