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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.
Generally, once the assignment is made and legally documented, it cannot be easily revoked unless there's a specific agreement that allows for it.
Yes, there are some risks. If the well doesn’t produce as expected, the assignee may not get the expected income, and the working interest owner may have less control over their lease.
Stated Percentage is the exact portion of the royalties that the working interest owner chooses to assign to another party, and it can vary based on negotiations.
Single Lease refers to a specific lease agreement under which the production of oil or gas takes place, and it is important because the assignment applies only to that particular lease.
A Working Interest Owner can assign their rights by drafting a legal document that outlines the terms of the assignment, including the percentage of royalties that are being given up and the specific lease involved.
An Assignment of Overriding Royalty Interest is a way for a working interest owner to give up some of their rights to the royalties from a lease, usually in return for a percentage of the earnings from oil or gas production.