Overriding Royalty Interest is carved out of the working interest (WI) of the well and usual conveyed to geologists, landmen, and other oil and gas professionals as financial compensation.
Overriding Royalty interest is free from the cost of production. The owner does not invest in the drilling activities or sharing well operating expenses.
Overriding Royalty Interest (ORRI) agreements terminate when the oil and gas terminates. It is not an interest in the mineral, but rather a share of the production. When the well or wells become uneconomical, the lease is released, terminating both the royalty and overriding royalty interest.
Minerals in the hottest shale plays are more valuable than those in older fields with conventional wells.
Producing minerals are worth more than non-producing minerals because they are generating revenue.
Highly productive wells (and off-set wells) can increase the value of your minerals.
Favorable lease terms (such as a 25% royalty) favorably impact the value of the leased minerals.
A small number of operators are unethical, and their reputation automatically devalues your minerals.
When oil and gas prices drop, revenue drops, and sometimes operators are unable to continue operations..
With the price of oil declining and operators practically giving gas away, I decided to sell before the bottom falls out.J. Cruz
I am on a fixed income, and the sale of these minerals will help me secure stable housing. My children will be okay if even if they don't inherit these minerals.S. Owens
My oil wells have been producing for decades and the reserves are almost depleted. Once the wells are plugged, the value will be significantly lower. I'd rather cash out now.R. Robertson
I inherited mineral rights, but don't want to be involved with fracking and fossil fuels. I would prefer to support renewable energy and do my part to reverse climate change.P. Harris