Contracts
and Lease Transfers
Leasehold Interest
Working Interest
* Possessory, operating interest
in real property
Lessee can assign all or any part
of
leasehold interest
* Assignment must be in writing
* Most leases refer
to assignments
Example 1
Lessee not interested in drilling
+
Assignee = interested Operator
(leased land in path of horizontal drilling extension)
(leased land is part of area being tested)
________________________________________
Lessee assigns leasehold
interest
(operating rights in whole or part)
Lessee reserves overriding royalty
(non-operating interest free of production costs)
