YOUR OVERRIDING ROYALTY INTEREST. YOUR OPTIONS.
If you own an overriding royalty interest, understanding what you own, how it is tied to the underlying lease, and what may affect its value is an important first step.
Royalty Ridge helps you understand your ORRI and explore your options with a straightforward, no-pressure evaluation.
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Find out what your minerals could be worth today — no cost, no commitment.
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KNOW WHAT YOU OWN
An overriding royalty interest, or ORRI, is different from mineral ownership. It is typically created from a leasehold or working interest and provides the holder with a percentage of production or proceeds, depending on the governing documents and applicable terms.
Unlike a mineral interest, an ORRI generally does not give the holder the same leasing or development rights associated with mineral ownership. An ORRI may also be limited by the term of the underlying lease.
The value of an ORRI can depend on the underlying lease, the ORRI burden and decimal, production and revenue history, operator activity, and how long the underlying lease remains in effect.
Get clarity on what you own and how your overriding royalty interest is structured.
Understand the key terms of the lease and how they may affect your ORRI.
Get information about your options without being required to sell.
Our team reviews the available information to help you better understand your ORRI and your options.
HOW IT WORKS
Provide details such as the property location, lease information, ownership documents, royalty statements or other records you have available. You don't need to have everything before getting started.
We analyze the available information, including the underlying lease, ORRI terms, production history, revenue information, operator activity and other relevant factors.
We'll review what we find with you, answer your questions and provide the information you need to decide what makes sense for your situation.
FACTORS THAT MATTER
An ORRI is connected to the underlying lease and production associated with that lease. Understanding its value requires looking beyond the royalty percentage alone.
The underlying lease, ORRI decimal, production history, revenue, operator activity and remaining lease term can all be relevant when evaluating an overriding royalty interest.
Terms, provisions and the current status of the underlying lease.
The decimal interest and any burdens or encumbrances associated with the ORRI.
Historical and current production and revenue from the wells connected to the interest.
Current and planned activity by operators in the area.
How long the underlying lease remains in effect and available information about future development.
KNOW THE DIFFERENCE
An overriding royalty interest is typically carved out of a leasehold or working interest rather than the mineral estate. It generally provides a right to receive a specified share of production or proceeds, depending on the governing documents.
An ORRI generally does not provide the same rights as owning the underlying mineral estate. It typically does not give the ORRI holder the right to lease the minerals or control drilling and development.
Another important distinction is duration. An ORRI commonly lasts only as long as the underlying lease remains in effect, although the specific documents control.
Because every interest is different, the actual recorded documents and underlying lease should be reviewed before determining what an ORRI represents or what options may be available.
REAL PEOPLE. REAL RESULTS.
COMMON QUESTIONS
Get quick answers to common questions about overriding royalty interests.
An overriding royalty interest, or ORRI, is generally a royalty interest carved out of a leasehold or working interest. It typically provides the holder with a share of production or proceeds under the applicable documents.
Mineral rights generally represent ownership of the minerals in place and may include leasing rights. An ORRI is typically created from a leasehold or working interest and does not provide the same mineral ownership rights.
An ORRI commonly lasts for the term of the underlying lease, although the specific documents governing the interest control.
The evaluation can consider the underlying lease, ORRI decimal, production and revenue history, operator activity, well information and remaining lease term, along with other relevant property and market information.
Depending on the specific interest and governing documents, a partial sale may be possible. The actual options depend on the ownership and transfer documents.
Production and revenue can be important factors because an ORRI generally receives its economic benefit from production associated with the underlying lease.
Because an ORRI commonly follows the term of its underlying lease, expiration of that lease may affect or terminate the ORRI, depending on the governing documents and applicable law.
Helpful documents can include the underlying lease, ORRI assignment, conveyance records, division orders, royalty statements, operator information and other documents describing the interest.
A sale may have tax consequences depending on your individual circumstances. A qualified tax professional can advise you based on your specific ownership, basis and transaction.
No. Requesting an evaluation does not obligate you to sell your ORRI.
YOUR OVERRIDING ROYALTY INTEREST
Get a clearer look at your overriding royalty interest, the underlying lease and the factors that may affect its value before deciding what to do next.
