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Overriding Royalty Interest
''For the English land law concept of overriding interest, please see'' Overriding interest, Overriding Interest''.'' An Overriding Royalty Interest (ORRI) is an oil and gas interest is separated from the participatory interest of what is called the working interest. It is percentage of gross production that is not charged with any expenses of from an oil and/or gas well. An ORRI is a Covenant (law), covenant Covenant (law)#Related to land, running with the land between the Assignment (law), assignor and assignee. However, it expires if the associated leases expire. Calculating ORRI The overriding royalty interest, for well units, is calculated as follows: (Overriding Royalty Rate) × (Working Interest) × (Mineral Interest) × (Tract Participation Factor) = ORRI Where the terms are defined as follows: * Working interest is the ownership interest that would require the participation in production expenses. * Mineral interest is the percentage of real property interest after sev ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Overriding Interest
''For the oil and gas terminology of overriding royalty interest, please'' ''see'' Overriding Royalty Interest. Overriding interest is an English land law concept. The general rule in registered conveyancing is that all interests and rights over a piece of land have to be written on the HM Land Registry, register entry for that land. Otherwise, when anyone buys that piece of land, the interests will not apply to the purchaser, and the rights will be lost. Overriding interests are the exception to this general rule. Overriding interests need not be registered to bind any new owner. Overview The House of Commons, House of Lords and tasked Royal Commission preparing the Law of Property Acts (1925) agreed that for many classes of interest it would be unreasonable to expect certain interests to be registered, in which legislation they were termed overriding interests. Their list was reformed and simplified under legislation of 2002 in staggered reforms between that year and 2013. Such ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Covenant (law)
A covenant, in its most general and historical sense, is a solemn promise to engage in or refrain from a specified action. Under historical English common law, a covenant was distinguished from an ordinary contract by the presence of a seal. Because the presence of a seal indicated an unusual solemnity in the promises made in a covenant, the common law would enforce a covenant even in the absence of consideration. In United States contract law, an implied ''covenant'' of good faith is presumed. A covenant is an agreement like a contract. A covenantor makes a promise to a covenantee to perform an action ''(affirmative covenant'' in the United States or ''positive covenant'' in England and Wales) or to refrain from an action (negative covenant). In real property law, the term real covenants means that conditions are tied to the ownership or use of land. A "covenant running with the land", meeting tests of wording and circumstances laid down in precedent, imposes duties or restri ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Assignment (law)
Assignment is a legal term used in the context of the laws of contract and of property. In both instances, assignment is the process whereby a person, the ''assignor'', transfers rights or benefits to another, the ''assignee''.For the assignment of claim seTrans-Lex.org/ref> An assignment may not transfer a duty, burden or detriment without the express agreement of the assignee. The right or benefit being assigned may be a gift (such as a waiver) or it may be paid for with a contractual consideration such as money. The rights may be vested or contingent,. and may include an equitable interest. Mortgages and loans are relatively straightforward and amenable to assignment. An assignor may assign rights, such as a mortgage note issued by a third party borrower, and this would require the latter to make repayments to the assignee. A related concept of assignment is novation wherein, by agreement with all parties, one contracting party is replaced by a new party. While novation re ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Oil And Gas Law
Oil and gas law in the United States is the area of United States energy law concerning the property law in oil and gas under the surface, after its capture, and litigation, statutes, and regulations regarding those rights. Overview The law regulating oil and gas ownership in the US generally differs significantly from laws in Europe; oil and gas are often owned privately in the US as opposed to being owned by the national government as they are in many other countries. Jurisdiction In the U.S., extraction of oil and gas is generally regulated by the individual states through statutes and common law. Federal and constitutional law apply as well. Ownership In the United States, oil and gas can be owned by individuals, corporations, LLCs, partnerships, Indian tribes, or by local, state, or federal governments. Oil and gas rights offshore are owned by either the state or federal government and can be leased to oil companies for development. The tidelands controversy inv ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
