What is the difference between a net revenue interest and mineral rights royalties?
A net revenue interest is defined as the total workng interest less lessor royalties, overriding royalties, other payments or carried interests and production payments.
So, 20% lessor royalty and 2.5% overriding royalty leaves a NRI of .775, or 77.5% (1.0-.2-.025).
It can be more complicated with backins, convertible overriding royalties and carried interests, but that the the basic definition
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Buddy CottenYears ago, when I first started in this business, I asked an old timer what net revenue meant? His reply was, "It's what you get".