This is an agreement that transfers the rights and responsibilities of a party under an oil and gas lease to a third party. The agreement transfers the rights to use oil and gas with regards to a specific leased property. The third party acquires the same rights and privileges as the transferring party and the transferring party will remain liable under the original lease unless they are released by the landlord. This document should be used by individuals or entities located in Kentucky seeking to assign or acquire rights under an oil and gas lease.
Docstoc Legal Agreements This is an agreement that transfers the rights and responsibilities of a party under an oil and gas lease to a third party. The agreement transfers the rights to use oil and gas with regards to a specific leased property. The third party acquires the same rights and privileges as the transferring party and the transferring party will remain liable under the original lease unless they are released by the landlord. This document should be used by individuals or entities located in Kentucky seeking to assign or acquire rights under an oil and gas lease. ® DISCLAIMERS: ALL INFORMATION AND FORMS ARE PROVIDED “AS IS” WITHOUT ANY WARRANTY OF ANY KIND, EXPRESS, IMPLIED, OR OTHERWISE, INCLUDING AS TO THEIR LEGAL EFFECT AND COMPLETENESS. They are for general guidance and should be modified by you or your attorney to meet your specific needs and the laws of your state. Use at your own risk. 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All Rights Reserved ASSIGNMENT OF OIL AND GAS LEASE This Assignment is made and entered into on ______ [Month] ____ [ Date], 20___, which shall also be the effective date of this agreement, for all purposes, by and between _____________________ [Instruction: Insert the name of individual/company], (hereinafter referred to as “Assignor”), having principal place of business at _____________________ [Instruction: Insert the address of individual/company] and _____________________ [Instruction: Insert the name of individual/company], (hereinafter referred to as “Assignee”), having principal place of business at _____________________ [Instruction: Insert the address of individual/company], individually termed as “Party” and collectively termed as “Parties” agree that: Identity of Lease WHEREAS, Assignor is Lessee under an Oil and Gas Lease executed on ______ [Month] ____ [Date], 20___, by Assignor as Lessee and ___________________________ [Instruction: Insert the name or names of the actual owner/lessor of the property], covering the real property in the County of ___________, [Instruction: Insert the County] Kentucky described as follows (hereinafter termed as the “Assigned Premises”): ____________________________________________________________________________________ ____________________________________________________________________________________ __________________________________________________________________[Instructions: Insert legal description of real property]; and WHEREAS, that lease is duly recorded in Book ___________, [Instruction: Insert the book name] at Page ___________ [Instruction: Insert the page number] of the official records of the county of __________, [Instruction: Insert the County] Kentucky. Assignment NOW, THEREFORE, in consideration for the sum of ________ ($___) [Instruction: Insert the sum, e.g., fifty thousand dollars ($50,000)] (hereinafter termed as the “Assignment Price”) and other good and valuable consideration, receipt of which is hereby acknowledged, Assignor does hereby assign and transfer to Assignee all of Assignor's right and interest in the lease and the real property covered by the lease, on the following terms and conditions: 1. Override Royalty: a) There is excepted from the above assignment reserved and retained in Assignor an overriding royalty equal to ______ (__ %) [e.g., six percent (6%)] [Instruction: Insert the fraction or percentage of royalty] of the value of all oil, gas or associated liquid or gaseous hydrocarbons produced and saved from or attributable to each of the tracts comprising the land covered by the Assigned Premises and removed under the lease, and the net proceeds received by Assignee from the sale of all gas and casing head gasoline produced and sold under the lease. Assignee agrees that all overriding royalties paid to Assignor hereunder shall be without deduction for the cost of producing, gathering, storing, separating, treating, dehydrating, compressing, processing and otherwise making the oil, gas and other products produced hereunder ready for sale or use and transporting production on the Assigned Premises or to a commingled facility in the Assigned Premises. b) The overriding royalty reserved and retained by Assignor shall be payable to Assignor at the same time, and shall be computed in the same manner, as is provided in the lease for the payment and computation of royalties payable under it to Lessor. 2. Assignee to Perform Lease: Assignee accepts, on the terms and conditions specified in this document, this assignment of lease, and agrees to truly and fully perform all of the terms and conditions of the lease to be performed under the lease by Lessee. 3. Indemnity Agreement: Assignee shall indemnify and hold Assignor and the property of Assignor, including Assignor's interest under this instrument, free and harmless from all claims, liability, loss, damage, or expense resulting from Assignee's performance of the lease, Assignee's occupation of any part of the real property covered by the lease, or the exploration for, or extraction by Assignee under the lease, of any oil, gas, or other hydrocarbon substances. 4. Modification and Extension of Lease: Assignee shall have the right to obtain from Lessor under the lease, or Lessor's successor in interest as Lessor under the lease, any modifications or extensions of the lease Assignee may desire, as long as the modifications or extensions do not reduce in any way the overriding royalty reserved and retained by Assignor under this instrument or otherwise infringe on any rights of Assignor under this instrument. 5. Development Clause: Unless Assignee has, on or before ______ [Month] ____ [Date], 20___, either commenced drilling operations on the land covered by the lease or reassigned its rights under the lease to Assignor, Assignee shall pay or tender to Assignor in advance on the first day of every month a monthly rental of ________ ($___) [Instruction: Insert the monthly rental amount, e.g., fifty dollars ($50)] until drilling operations are commenced by Assignee on the land covered by the lease or Assignee's rights in the lease are reassigned by Assignee to Assignor. Provided, however, that no payments made pursuant to this paragraph shall in any way extend the period within which Assignee must commence drilling operations on the land covered by the lease beyond one year from the date of this instrument. Provided, further, any amounts payable under the lease to Lessor as deferred rentals until drilling operations are actually commenced on the land covered by the lease shall, for a period not exceeding one year from the date of this instrument, be paid by Assignor from the rental payable to Assignor by Assignee pursuant to this paragraph. 6. Access to Wells: Assignor shall have access to any well drilled by Assignee on the land covered by the lease and shall have the privilege of witnessing all tests and operations conducted on or in connection with any such well. On written request of Assignor, Assignee agrees to furnish Assignor with copies of logs and reports obtained or prepared in connection with any well drilled on the land covered by the lease. 7. Assignor's Warranties: Assignor makes no warranty of title with respect to the land covered by the lease, but Assignor does warrant and represent to Assignee that: a) The rights and interests assigned and transferred to Assignee by this instrument are free and clear of all liens, charges, and encumbrances created by Assignor; b) Assignor has the right to make the assignment and transfer effectuated by this instrument; c) No default or defaults now exist or have been declared under the lease; and d) The lease is now in good standing and in full force and effect. 8. Manner of Payments to Assignor: All moneys payable under this agreement by Assignee to Assignor shall be deemed duly paid when a check for them payable to the order of Assignor is deposited in the United States mail, first-class postage prepaid, addressed to Assignor at its depository, the _______________ [Instruction: Insert the name of the bank] _____________ [Instruction: Insert the name of street] Kentucky. Assignor may from time to time change depositories for the purpose of this paragraph by giving written notice of the change and the name and address of the new depository to Assignee in the manner prescribed by Paragraph 9 of this instrument. 9. Notices: All notices or other communications required or permitted by this instrument, the lease, or by law to be served on or given to either Party to this agreement, Assignor or Assignee, by the other Party shall be in writing and shall be deemed duly served when personally delivered to the Party to whom it is directed or when deposited in the United States mail, first-class postage prepaid, addressed to Assignor or to Assignee. Either Party, Assignor or Assignee, may change its address for the purpose of this paragraph by giving written notice of _______ days (___days) [◊Instruction: Insert number of days, e.g., ten days (10 days)] to the other Party in the manner provided in this paragraph. 10. Attorney's Fees: Should any litigation be commenced between the Parties to this instrument concerning the assignment and transfer made by it, the lease, or the rights or duties of either Party in relation to the lease or to this instrument, the Party, Assignor or Assignee, prevailing in that litigation shall be entitled, in addition to such other relief as may be granted, to a reasonable sum as attorney's fees in the litigation, which shall be determined by the court in the litigation or in a separate action brought for that purpose. 11. Binding on Heirs: All of the terms and provisions of this instrument shall inure to the benefit of and shall be binding on the heirs, executors, administrators, representatives, successors, and assigns of each of the Parties to this agreement. 12. Sole and Only Agreement: This instrument constitutes the sole and only agreement between Assignor and Assignee respecting the lease or the assignment of the lease by Assignor to Assignee, and correctly sets forth the obligations of Assignor and Assignee to each other as of its date. Any agreements or representations respecting the lease or its assignment to Assignee not expressly set forth in this instrument are null and void. This Assignment is made by Assignor and accepted by Assignee subject to the terms and conditions of all existing agreements and contracts affecting the Assigned Premises. This Assignment is made without warranty of title, express or implied, except as to those encumbrances made by, through or under Assignor. IN WITNESS WHEREOF, this instrument is executed as of the date first above written. __________________________________ [Instruction: Insert signature of Assignor] ________________________________ [Instruction: Insert signature of Assignee] __________________________________ [Instruction: Insert witness of Assignor] __________________________________ [Instruction: Insert witness of Assignee] ACKNOWLEDGMENT This instrument was acknowledged before me on ______ [Month] ____[ Date], 20___, by _________________________________________________________________________. Notary Public, State of Kentucky. ______________________________________ [Instruction: Insert Notary's typed or printed name] Notary's commission expires: ______ [Month] ____ [Date], 20___. [Instruction: Insert the date of expiry of Notary's Commission]
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