دیکشنری تخصصی مهندسی نفت - نسخه آنلاین

n: an option right reserved by the granting company of a farmout to convert an overriding royalty to a working interest once the conditions for such back-in have been met. Compare election at casing point.

n: a cash payment by the lessee for the execution of an oil and gas lease by the mineral owner;expressed as dollars per acre. Occasionally, an oil payment or overriding royalty may be reserved as a bonus by a lessor in addition to regular royalty.

n: an interest in oil and gas created out of a greater interest and assigned by the owner. Examples are the grant of an overriding royalty interest out of a working interest and the grant of an oil payment out of a working interest.

n: a reduction in US taxes for owners of an economic interest in minerals in place to compensate for the exhaustion of an irreplaceable capital asset. This economic interest includes mineral interest, working interest in a lease, royalty, overriding royalty, production payment interest, and net profits interest.

n: an agreement whereby the owner of a lease who does not wish to drill at the time agrees to assign the leasehold interest, or some part of it, to a third party who does wish to drill, conditional on the third partys drilling a well within the expiration date of the primary term of the lease. The assignment may include the entire interest together with dry hole money, or partial interest or entire interest with or without an override. If an override is retained, the owner of the lease may retain an option to convert such overriding royalty retained to an agreed-upon working interest. A farmout is distinguished from a joint operating agreement by the fact that the partner farming out does not incur any of the drilling costs. The primary characteristic of a farmout is the obligation of the third party to drill one or more wells on the farmout acreage as a condition prerequisite to completion of the transfer of title to such third party.

n: a workinginterest owners total ownership in production, before deduction of related royalty, overriding royalty, or production payment interests.

n: all or a fractional part of the interest of a lessee (grantee) under an oil and gas lease. Such interest includes the lessees right to search for, drill, and produce oil and gas from a lease tract subject to royalty payments. The term usually refers to the remaining leasehold or working interest exclusive of any nonoperating interests created and assigned therefrom, such as overriding royalty interests and production payments. Also called operating interest, working interest.

n: an interest carved out of the lessees working interest. It entitles its owner to a fraction of production free of any production or operating expense, but not free of production or severance tax levied on production. An overriding royalty may be created by grant or by reservation. Commonly, an override is reserved by the assignor in a farmout agreement or other assignment. An overrides duration corresponds to that of the lease from which it was created.

a royalty interest that may be retained by a third party as payment or investment. This interest normally bears no part of the drilling and completion expenses of the well.