Can an assignment be limited to the wellbore?
An assignment can be limited to the wellbore of a well. A wellbore limitation means that the assignor is assigning only those rights to production from the wellbore of a certain well, arguably at the total depth it existed at the time of the assignment.
What is a wellbore limitation?
A wellbore limitation means that the assignor is assigning only those rights to production from the wellbore of a certain well, arguably at the total depth it existed at the time of the assignment.
Can a USG assign a wellbore interest in a well?
For the avoidance of doubt, USG shall not be entitled to an assignment of a Wellbore Interest with respect to any Subject Well that is not completed as a well capable of producing oil or gas and the intent to Plug and Abandon has been filed or will be filed within thirty (30) days with the relevant Governmental Authority following cessation of d...
What is a carried working interest in a wellbore?
Assignee The term “Carried Working Interest” means that the Assignor shall bear the Carried Costs (defined below) attributable to Assignee’s Wellbore Interest prior to the point of delivery of production from the Wellbore to the tanks for oil and to the first meter on the wellsite for gas.
What is a wellbore interest?
Wellbore Interest means all rights in and to (i) the Well, (ii) the Lease, to the extent, and only to the extent, ownership in such Lease is necessary to allow the owner of the Weil to produce and own all production from, and bear all costs and expenses associated with, the Well, and (iii) to the extent necessary for ...
What is an assignment of oil and gas Lease?
The assignment serves three basic functions. First, it is the operative document that assigns rights and delegates duties between the assignor and the assignee. 22/ Second, it allocates liabilities between the assignor and assignee and may create obligations in addition to those imposed by the oil and gas lease.
What is an assignment contract?
An Assignment, or an assignment of contract, is a document that allows one party to transfer the rights and benefits of a contract to another party.
What is the difference between a lease and an assignment?
Privity of Contract: If the lessee transfers his or her entire remaining interest in the tenancy, then the transfer is known as an assignment. If the lessee transfers only part of his or her interest, then the transfer is known as a sublease.
What is the difference between well and wellbore?
A wellbore is a hole that is drilled to aid in the exploration and recovery of natural resources, including oil, gas, or water. A wellbore is the actual hole that forms the well.
Is it good to buy an assignment Sale?
Buying an assignment can also lead to possessing the property quicker than purchasing a pre-sale unit. When an assignment is available for sale, construction is often already well underway, meaning the time to occupancy is shortened.
What is the purpose of the assignment?
An assignment is a piece of (academic) work or task. It provides opportunity for students to learn, practice and demonstrate they have achieved the learning goals. It provides the evidence for the teacher that the students have achieved the goals.
Can you terminate an assignment agreement?
Citizens and the Firm may each terminate a specific assignment or all assignments held by the Firm, at any time upon advanced written notice.
What does assignment of leases mean?
An assignment is when the tenant transfers their lease interest to a new tenant using a Lease Assignment. The assignee takes the assignor's place in the landlord-tenant relationship, although the assignor may remain liable for damages, missed rent payments, and other lease violations.
What is the purpose of an assignment of leases and rents?
The assignment of leases and rents, also known as the assignment of leases rents and profits, is a legal document that gives a mortgage lender right to any future profits that may come from leases and rents when a property owner defaults on their loan. This document is usually attached to a mortgage loan agreement.
What is the difference between assignment and transfer of lease?
With an assignment, you will have no responsibilities as the original tenant from the date of assignment. All obligations as set out in your original tenancy agreement will be transferred to the new tenant or 'assignee'. To formalise the transfer, all parties must agree and sign a transfer of lease and deed of consent.
What is an assignment and assumption of lease?
An assignment and assumption agreement is used after a contract is signed, in order to transfer one of the contracting party's rights and obligations to a third party who was not originally a party to the contract.
What is a wellbore assignment?
Wellbore. An assignment can be limited to the wellbore of a well. A wellbore limitation means that the assignor is assigning only those rights to p...
What is an assignment of oil and gas lease?
An Assignment of an Oil, Gas and Mineral Lease is a document in which the original Lessee, and or their successors, assign either all or part of th...
What is a wellbore in oil and gas?
A wellbore is a hole that is drilled to aid in the exploration and recovery of natural resources, including oil, gas, or water. A wellbore is the a...
What is a wellbore interest?
Wellbore Interest means, for each Subject Well, a specified percentage of AEE's right, title and interest in and to: (i) the applicable Subject Wel...
How do you determine mineral rights?
As a mineral rights value rule of thumb, the 3X cash flow method is often used. To calculate mineral rights value, multiply the 12-month trailing c...
How do you convey mineral rights?
An owner can separate the mineral rights from his or her land by: Conveying (selling or otherwise transferring) the land but retaining the mineral...
What is a term assignment?
Assignment is a legal term whereby an individual, the assignor, transfers rights, property, or other benefits to another known as the assignee. Thi...
What is a stipulation of interest?
A stipulation of interest is a contract that consists of mutual conveyances, and therefore, it must conform to the requirements of both a contract...
What is wellbore assignment?
Wellbore Assignments means instruments, each of which is substantially in the form attached hereto as Exhibit A, that convey working interests in identified producing wells.
Who warrants Defensible Title to the Assets in the Wellbore Assignments?
Sellers shall warrant Defensible Title to the Assets in the Wellbore Assignments and in the Conveyance, Assignment and Bill of Sale referred to in Sections 10.2 (a) and (b) from and against all Persons claiming by, through and under Sellers, but not otherwise.
What is assignment of leases and rents?
Assignment of Leases and Rents With respect to the Mortgaged Property, any assignment of leases and rents or similar agreement executed by the Borrower, assigning to the mortgagee all of the income, rents and profits derived from the ownership, operation, leasing or disposition of all or a portion of the Mortgaged Property , in the form which was duly executed, acknowledged and delivered, as amended, modified, renewed or extended through the date hereof and from time to time hereafter.
What is contract assignment?
Contract Assignment means, with respect to the Mortgaged Property, the Assignment of Contracts, Licenses, Permits, Agreements, Warranties and Approvals, dated as of the Closing Date and executed by the Borrower.
What is assignment and conveyance?
Assignment and Conveyance An assignment and conveyance of the Mortgage Loans purchased on a Closing Date in the form annexed hereto as Exhibi t 4.
What is a wellbore assignment?
Wellbore. An assignment can be limited to the wellbore of a well. A wellbore limitation means that the assignor is assigning only those rights to production from the wellbore of a certain well, arguably at the total depth it existed at the time of the assignment.
When is the Wellbore form used?
This form is used when the Assignor owns and desires to assign to Assignee, all of its interests in and to the well and wellbore described within, together with the rights associated with the wellbore as specifically described within.
What is a wellbore in oil and gas?
A wellbore is a hole that is drilled to aid in the exploration and recovery of natural resources, including oil, gas, or water . A wellbore is the actual hole that forms the well. A wellbore can be encased by materials such as steel and cement, or it may be uncased.
What is an assignment of oil and gas lease?
An Assignment of an Oil, Gas and Mineral Lease is a document in which the original Lessee, and or their successors, assign either all or part of their working interest and/or net revenue interest that they own in that lease. This is leasehold interest. You can also assign or reserve interest in wellbores.
How do you determine mineral rights?
As a mineral rights value rule of thumb, the 3X cash flow method is often used. To calculate mineral rights value, multiply the 12-month trailing cash flow by 3. For a property with royalty rights, a 5X multiple provides a more accurate valuation (stout.com).
How to separate mineral rights from land?
An owner can separate the mineral rights from his or her land by: Conveying (selling or otherwise transferring) the land but retaining the mineral rights . (This is accomplished by including a statement in the deed conveying the land that reserves all rights to the minerals to the seller.)
When does a seller assign the additional wellbore interest?
Within 15 calendar days following the date of commencement of actual drilling operations of an Additional Well (the “Spud Date”), Seller shall assign to Drillco the Additional Wellbore Interest (proportionately reduced to Seller’s interest as of the time Seller executes its assignment to Drillco; provided, however, that the working interest conveyed to Drillco shall never be reduced by a fraction less than the fraction of Seller’s ownership as of the Closing Date) in the Wellbore for such Additional Well.
What is wellbore interest?
Wellbore Interest means, for each Subject Well, a specified percentage of AEE 's right, title and interest in and to: (i) the applicable Subject Well and associated wellbore and all Hydrocarbons and other substances produced therewith, (ii) all equipment, contracts and other personal property and fixtures associated with such Subject Well and (iii) the oil and gas leases described in Exhibit A insofar and only insofar as such leases cover the right to produce from the wellbore of such Subject Well from the Commencement Date for such Subject Well.
What is an additional well notice?
Each Additional Well Notice shall include the Additional Wells set forth in the Development Plan in which Drillco has elected to participate and the Additional Wellbore Interest that Drillco has elected to acquire with respect to each Additional Well.
What is carried working interest?
The term “Carried Working Interest” means that the Assignor shall bear the Carried Costs (defined below) attributable to Assignee’s Wellbore Interest prior to the point of delivery of production from the Wellbore to the tanks for oil and to the first meter on the wellsite for gas.
Who binds itself to the Wellbore interest?
Assignor does hereby bind itself, its successors and assigns, to warrant and forever defend the title to the Wellbore Interest unto Assignee, its successors and assigns, against any person whomsoever lawfully claiming or to claim the same or any part thereof, by, through or under Assignor, but not otherwise.
Is the effective date of the assignment of each additional wellbore interest retroactive?
The effective date of the assignment of each Additional Wellbore Interest shall be retroactive to the Spud Date of the applicable Additional Well.
What is assignment wellbore?
Wellbore. An assignment can be limited to the wellbore of a well. A wellbore limitation means that the assignor is assigning only those rights to production from the wellbore of a certain well, arguably at the total depth it existed at the time of the assignment.
What is the problem with wellbore only assignments?
The central problem with wellbore only assignments is determining when in fact there is a wellbore only assignment. The title examiner should be aware that a wellbore assignment is the narrowest of assignments. Very limited rights to the lease are being assigned. It can be argued that the lease or unit and the lands covered by the lease or unit need only be described for informational purposes, as it is rights to the wellbore being assigned. Furthermore, the fact that a well or unit is mentioned in the description of the lease does not entail that the assignor intended to convey wellbore rights only. More often than not, a reference to a well or unit in Oklahoma is for informational purposes.
How deep is the Woodford Formation?
For instances, an assignment may limit the assigned leases “insofar as said leases cover the Woodford Formation” or “insofar as from the surface to a depth of 8,100 feet.”.
Do title examiners read assignments?
Furthermore, title examiners should always read an assignment thoroughly to determine whether a depth limitation is pertinent . Many times, such a limitation is buried in one of the numerous special provisions of the assignment or placed in one of the exhibits attached thereto. Horizontal Limits.
Is an assignment a contract?
Assignments are a contract and a conveyance.7 As such, they are to be read in accordance with the basic rules of contractual interpretation,8 which comprise not only those findings in Oklahoma’s case law but also the statutory provisions of 15 O.S. §§151-178.
When parties assign an interest in a lease with a single existing well, disputes can sometimes arise?
Where parties assign an interest in a lease with a single existing well, disputes can sometimes arise when the leasehold is further developed. Was the parties’ intent for the assignment to be limited to that single wellbore or did it also include production from later-drilled wells? The Texas Supreme Court reviewed a dispute as to whether an assignment of an overriding royalty interest conveyed an interest limited to an entire lease, a single well, or to the lands identified in the assignment.
Did Neuhoff Oil convey its entire interest under the Puryear Lease?
In addition, the Court noted the language “All presently existing contracts…to the extent they affect the Leases,” indicated “Neuhoff Oil conveyed its entire interest under the Puryear Lease,” further discrediting the assignment to Piranha was limited to the wellbore or land itself. Other provisions also referenced the lease, including a provision which indicated that the overriding royalty was payable out of oil produced under the lease and pursuant to the terms of the lease. The proportionate reduction clause also referenced the assignor’s interest in the lease.
