New to the forum. I have a Mineral interest in Garvin Cnty. Sec 23 - 3N - 4w, WS/4 NE /4 with Blk and lots. County search also indicated others (not related) with an overiding interest, including same description(s). is there both mineral and overiding interest in a property. Ken
Ken: Short answer, yes. An overriding royalty interest is carved out of the Oil & Gas Lease that is taken on the minerals. The ORRI only vests if there is production from a well drilled during the primary term of the OGL. An example of an ORRI- lets say the mineral owner decides to lease his interest for a 3/16ths royalty. The lessee then has an 13/16ths or 81.25% net revenue interest in the lease. He decides to give his grandchildren an ORRI equal to an undivided 2%. So the leasehold owner now has a 79.25% net revenue interest, the ORRI equals 2% and the mineral owner has 18.75%. This totals 100%. If the lease expires, the ORRI expires with it and now the mineral owner has a 100% net revenue interest as there is no lease. Hope this helps.
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