A Conversion of Reserved Overriding Royalty Interest to Working Interest form. The assignee shall be entitled to recover, out of the total proceeds derived from the sale of oil and gas produced from each well drilled and completed as a well capable of producing oil or gas in paying quantities on the Land, the total cost of drilling, completing, and equipping such well together with the cost of operating such well until the time of such recovery.
Pima Arizona Conversion of Reserved Overriding Royalty Interest to Working Interest
Category:
State:
Multi-State
County:
Pima
Control #:
US-OG-488
Format:
Word;
Rich Text
Instant download
Description
Free preview
How to fill out Conversion Of Reserved Overriding Royalty Interest To Working Interest?
How long does it generally take you to draft a legal document.
Considering that each state has its own laws and regulations for every aspect of life, finding a Pima Conversion of Reserved Overriding Royalty Interest to Working Interest that meets all local standards can be draining, and hiring a professional attorney can often be expensive.
Numerous online platforms provide the most sought-after state-specific templates for download, but utilizing the US Legal Forms repository is the most advantageous.
Choose the subscription plan that fits you best.
- US Legal Forms boasts the largest online compilation of templates, organized by states and usages.
- In addition to the Pima Conversion of Reserved Overriding Royalty Interest to Working Interest, you can acquire any particular form needed for your business or personal matters, adhering to your local regulations.
- All samples are verified by experts for their accuracy, ensuring that you can prepare your paperwork correctly.
- Using the service is quite straightforward.
- If you already possess an account on the site and your subscription is active, all you have to do is Log In, select the needed form, and download it.
- You can access the file from your profile at any later time.
- If you are unfamiliar with the site, you will need to complete a few additional steps before acquiring your Pima Conversion of Reserved Overriding Royalty Interest to Working Interest.
- Review the content of the current page.
- Examine the description of the template or Preview it (if accessible).
- Search for another form using the related option in the header.
- Press Buy Now once you are confident in your selected file.
Form popularity
FAQ
Legal Definition of overriding royalty : an interest in and royalty on the oil, gas, or minerals extracted from another's land that is carved out of the producer's working interest and is not tied to production costs compare royalty.
Royalty interest in the oil and gas industry refers to ownership of a portion of a resource or the revenue it produces. A company or person that owns a royalty interest does not bear any operational costs needed to produce the resource, yet they still own a portion of the resource or revenue it produces.
If a prepetition overriding royalty interest transaction is characterized as a transfer of real property (i.e., a sale), then the interest has effectively been transferred from the debtor's ownership and is not part of the bankruptcy estate.
An overriding royalty interest (ORRI) is similar to a royalty interest in that it is also a portion of the proceeds from the sale of production. However, it is not retained under the terms of the oil and gas lease. An ORRI is granted, assigned and created under the terms of a separate document.
Royalty Interest an ownership in production that bears no cost in production. Royalty interest owners receive their share of production revenue before the working interest owners. Working Interest an ownership in a well that bears 100% of the cost of production.
1. n. Oil and Gas Business Ownership in a percentage of production or production revenues, free of the cost of production, created by the lessee, company and/or working interest owner and paid by the lessee, company and/or working interest owner out of revenue from the well.
An overriding royalty interest (ORRI) is an undivided interest in a mineral lease giving the holder the right to a proportional share (receive revenue) of the sale of oil and gas produced.NRI = Working Interest Royalty Interests. 100 25 = 75 percent (NRI) $1,000,000 $250,000 = $750,000 (monthly NRI)
