A mineral interest ownership includes the executive rights to explore, develop, and produce the minerals under a specific tract of land.Learn more
Working interest includes the right to explore, develop, and produce minerals granted by an oil and gas lease but also the obligation to pay expenses (including royalty payments).Learn more
Carved out of the mineral estate, an NPRI is in interest in the proceeds from the sale of minerals. NPRI owners do not have "executive" rights, meaning they cannot sign an oil and gas lease.
Leasehold interest is another term for working interest and is often used to describe working interest in a lease that has not yet been developed.
Royalty interest owners are entitled to a percentage of the well's revenue without having to pay for any of the expenses associated with drilling or operating the well.Learn more
Non-operated working interest owners do not make operating decisions but are still obligated to pay for the drilling and operating expenses. Both types of working interest receive tax benefits.
Net Proceeds Interest (also called Net Profits Interest) is an interest in proceeds from the net profits. This is least common type of mineral rights.Learn more
|MINERAL INTEREST (MI)||ROYALTY INTEREST (RI)||NON-PARTICIPATING ROYALTY INTEREST (NPRI)||OVERRIDING ROYALTY INTEREST (ORRI)||WORKING INTEREST (WI)||NON-OPERATING WORKING INTEREST|
|OWNS THE MINERALS UNDER THE SURFACE||✓||✗||✗||✗||✗||✗|
|HAS THE RIGHT TO EXECUTE EXPLORE DEVELOP AND PRODUCE MINERALS UNDER THE SURFACE||✓||✗||✗||✗||✗||✗|
|HAS THE RIGHT TO EXECUTE AN OIL AND GAS LEASE||✓||✗||✗||✗||✗||✗|
|RECEIVES LEASE BONUS PAYMENTS||✓||✗||✗||✗||✗||✗|
|RECEIVES LEASE DELAY RENTAL PAYMENTS||✓||✗||✗||✗||✗||✗|
|RECEIVES REVENUE FROM WELL PRODUCTION||✓||✓||✓||✓||✓||✓|
|RIGHTS ARE RETAINED AFTER A LEASE EXPIRES||✓||✗||✓||✗||✗||✗|
|PAYS EXPENSES RELATED TO EXPLORATION, DRILLING, DEVELOPMENT AND OPERATIONS OF A WELL||✗||✗||✗||✗||✓||✓|
|RECEIVES TAX ADVANTAGES||✗||✗||✗||✗||✓||✓|
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. J. CRUZ
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
I lost my job and because of the COVID-19 lockdown, I needed the money. I'm so grateful to have been able to sell my minerals to get me through this rough time. R. FRANK