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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.
It’s wise to consider factors like the lease's production history, the operator's reliability, and potential future developments before making a decision.
Yes, there are risks, including the possibility of decreased revenue if production diminishes or if the lease is not developed as planned.
A working interest owner might assign their overriding royalty interest to raise funds, share risk, or reward investors without losing control of the lease.
'Stated percentage' indicates the specific fraction or percentage of the revenue that the overriding royalty interest holder is entitled to receive from the lease.
'Single lease' refers to a specific oil and gas lease under which the overriding royalty interest is assigned or created.
An owner can assign their overriding royalty interest by legally transferring it to another party, often through a written agreement.
An overriding royalty interest gives a person or entity the right to receive a share of the production revenue from an oil and gas lease, without bearing any costs.