Fill and Sign the An Analytical Approach to Drafting Assignments Smu Scholar Form

ASSIGNMENT OF OVERRIDING ROYALTY INTERESTS(Multiple Leases, Long Form) State: County: Assignor: (Name and Address) Assignee: (Name and Address) Effective Date: Assignor, named above, owns leasehold interests in oil, gas and mineral leases (the “Leases”) covering lands located in the county and state named above (the “Lands”). T he Leases and Lands are described on Exhibit “A” to this Assignment. For adequate consideration, Assignor transfers, assigns, and conveys to Assignee an overriding royalty interest in all of the oil, gas, and other minerals produced, saved, and marketed from all of the Lands and Leases equal to ____ (the “Override”). The Override assigned to Assignee is subject to the following: 1. The terms and provisions of the Leases, any amendments, corrections, additions, or modifications of the Leases made prior to or after the execution of this Assignment. Assi gnee agrees that future amendments, corrections, additions, or modifications of the Leases ma y be made without the consent or joinder of Assignee. 2. All applicable laws, rules, regulations, and orders of appropriate governmental authorities and agencies having jurisdiction over the Lands and Leases. 3. The Override is assigned free and clear of all drilling, testing, equipping, completing and operating costs and expenses. However, the Override shall be subject to all taxes and charges which are applicable to the Override or the production which is attributabl e to the Override. This includes, without limitation, all production, severance, excise, gathering, transportation, or similar taxes attributable to the Override and other costs and charge s applicable to or borne by the lessor under the terms of the Leases. Assignee shall bear its proportionate share of treating all products produced to make them marketable, including the cost of ga thering, compression, and transportation. No payments to the Override will be made or shall accrue on any oil, gas and casinghead gas or other hydrocarbon substances or minerals used for operating, developing, or producing purposes on the Lands under the Leases, or which are unavoidably lost. No payments shall be made to the Override on gas and casinghead gas used for recycling or repressuring operations that benefit the Leases. 4. In the event Assignor is required to assign or relinquish all or any portion of Assignor's interest in the Leases, or production from the Leases, pursuant to any election by Assignor under an Operating Agreement or other agreement under which the Override would be considered a “subsequently created interest” or which does not require the parties acquiri ng Assignor's interest in the Lease to bear the Override, then no payments shall be due to t he Override on production attributable to the assigned or relinquished working interest and as to such interest, the Override shall be deemed to have terminated. Assignor reserves the right to execute, on behalf of Assignee, any instruments required to give effect to this provision. 5. All payments to the Override shall be made or delivered to Assignee in the same manner provided in the Leases for the payment of royalty to the lessors. 6. No obligations, express or implied, shall arise by reason of the assignment of the Override which shall obligate Assignor to maintain the Leases either by payment of de lay rentals, compensatory royalties or other payments, or by the drilling of any wells on the L ands subject to the Leases. Assignee is to receive the Override from actual production of oi l, gas, and other hydrocarbon substances and minerals when produced and saved at the well from the Lands under the terms of the Leases. Assignee shall not be entitled to any part of any payment s made to Assignor, except Assignee's assigned interest in actual production proceeds. Assignor specifically reserves the right and authority to release the Leases as to any part of the Lands without the consent of or liability to Assignee. 7. If a Lease or Leases cover less than the entire mineral estate in the Lands, Assignor's leasehold interest represents less than 100% of the leasehold estate in a part or all of the Lands, or, if for any reason title should fail as to all or part of the leasehold estate owned by Assignor, the Override assigned to Assignee shall be reduced proportionately as to the affected Lease and Lands. 8. Assignor expressly reserves the right to pool, combine, or unitize, at any time and from time to time, either before or after production, without the consent or joinder of Assignee , all or any portion of the Leases and Lands as to any depth or depths, with other land or lea ses. The unit or units created by a pooling or combination shall be of a size and shape as Assi gnor determines to be appropriate for development and production of oil, gas, or other minerals, unless a larger or smaller spacing pattern, or drilling or production unit (including field or pooled units) have been fixed, established or approved by an order of a regulatory body or other authority having jurisdiction, in which event such spacing pattern or drilling or production units may comply with such order. If pooled, combined or unitized, payments on or to the Override shall be computed only on the proportionate part of production from any pooled unit allocated to the Lands or any part of the Lands which are included in such a unit. Unless otherwise allocated by order of any regulatory body or other authority having jurisdiction, or agreement by Assignor, the amount of production to be allocated to each pooled unit shall be that proportion of the total produc tion that the surface area of the Lands included within the pooled unit bears to the total surfa ce area of all the lands contained within the pooled unit. If and when the Lands or any part are pooled, combined, or unitized, each unit shall be treated for all purposes, except for the payment of the Override from production on the pooled unit, as if each unit were one lease, and production from or operations on the pooled uni t shall be treated as if the production or operations were from or on any lease or leases place d in the pooled unit, regardless of whether the well or operations are actually on the Lands. It is further understood that the provisions of this Assignment granting Assignor pooling authority shall not obligate Assignor to unitize or pool any portion of the Leases or to dri ll or operate on the Lands. Assignor shall have the continuing right to reform or terminate any pooled unit formed and it shall never be necessary for Assignee to execute any agreement cre ating, reforming, or terminating a pooled unit. Assignor agrees that all pooling shall be accompli shed within the perimeters set by all state and federal laws, executive orders, rules, or regulations. 9. In the event the Leases are renewed, or the primary term of the Leases extende d by the action of Assignor or Assignor's successors, assigns, and/or legal representatives, then the Override shall remain a burden against the Leases as so extended, or against the renewed Leases. Assignor warrants that the Override is conveyed free and clear of all liens and encumbrances. Further, Assignor covenants that (he/she/it) has full right, power, and authority to assign the Override to Assignee. Assignor assigns the Override to Assignee without warranty of title. The terms and provisions of this Assignment shall inure to the benefit of Assignor and Assignee and to their heirs, legal representatives, successors, and/or assigns. This Assignment is executed as of the date of acknowledgment of Assignor's signature below, but shall be effective for all purposes as of the Effective Date stated above. Assignor (acknowledgment) [Exhibit “A”: Description of Leases and Lands]