Kentucky Assignment of Oil and Gas Lease

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                             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.
             ®




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                            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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Description: 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.
This document is also part of a package Essential Kentucky Legal Documents 144 Documents Included