Under terms and conditions the assignor list the following:
“This assignment is made without warranty either express or implied; and the terms hereof shall extend to and be binding upon parties hereto, respective heirs, legal representatives,successors and assigns, and shall be deemed covenants running with above described land and leaseholder estate.”
My question is this ORRI legally not able to be cancelled because of different O/G leases?
The orri will last only as long as the underlying leases are still in effect. Once those lease expire or terminate, then the orri will also expire or terminate. This clause is just saying it is binding on anybody who comes along afterwards.
The ORRI will be extinguished upon the termination of the lease it burdens UNLESS an “anti washout clause” is included in the Assignment. Poorly worded anti-washout clauses can be ineffective, so a visit to an O&G Attorney is needed. I learned the hard way, take the easy way.