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.
With the price of oil declining and operators practically giving gas away, I decided to sell before the bottom falls out.J. Cruz
I'm getting older and want to buy a vacation house in Florida. My children aren't particularly interested in the oil stuff anyway. 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