August 7 Slide Show.pdf - Contracts and Lease Transfers Leasehold Interest Working Interest Possessory operating interest in real property Lessee can

August 7 Slide Show.pdf - Contracts and Lease Transfers...

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Contracts and Lease Transfers
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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
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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)
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