Does nonparticipating royalty interest mean that you own royalty but do not get a leasing bonus? If you own NPRI , do you have any say in the lease terms?
The way I understand it is that you get royalty when there is payment of that but no leasing, lease negotiating, or bonus.
Nancy,
That is my understanding as well. There are serious downfalls to being a non-participating royalty owner, but there is virtually nothing one can do about it.
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I agree with Nancy. We were told there was a lease in effect already (from the 1960’s) that somehow we were under the effects of now. So there was no reason to sign a new lease. Of course the terms of the lease are 1/8 and all other base items, so we don’t get much from it. Better than nothing, though!
I was told the NPRI was where they keep the monies from any NPRI and put it back into their cost of production, enhancement ECT. I have it listed as NPRI1. Do not understand why when we get division orders for a new well my NPRI has the 1 following it? Anyone know?
Could it be that it shows what lease the NPRI is attached?
Still not sure what NPRI actually means? I (we) only signed one lease. We do get division orders, which I also don’t know that is, that we sign when ever they arrive. Usually consists of TI* R1
What is TI*R1? NPRI usually means Non Participating Royalty Interest. It usually happens when somebody sells some property and retains part of the mineral interest but without any rights to lease or receive bonus, rental money etc for the lease. It does mean that when a well is drilled, the NPRI owner receives his/her share of the royalty on the oil and gas produced (maybe 50% interest in all the royalty for that property). The NPRI owner can sell his/her interest but the purchaser will still have the same rights, i.e. no leasing rights but the right to receive that share of the royalty. A division order states your interest in the division of the royalty interests to be paid from a well. It gets complicated to calculate.
I apologize up front if I step on anyone’s toes, but I have a quick question. Which NPRI is being discussed? I agree with NPRI being Non Participating Royalty Interest and the definition offered. However, there is a different NPRI that some companies use as a deduction, that is not associated with Non Participating Royalty Interest, but their the production company’s own specific acronym, that can be found in the check statement of a royalty payment.
I would like to learn more about acronyms for deductions on royalty checks.
John,
I have always thought the production companies intentionally are vague with their acronyms to keep the mineral owners confused. Unfortunately, I suspect less than 5% actually pay attention to their check statements, simply happy to deposit the check.
There are rumors of class action suits against the two largest producers in WV, in regard to deductions and they way the companies justify deductions with creative acronyms.
WV Mineral owner, You always have good information. Are you going to the NARO meeting at old Moundsville Prison Tuesday November 27?
John
John,
I will not be attending the Moundsville meeting, but am making the drive to the Ellenboro meeting on December 11th. A good friend will be a presenter at the Ellenboro meeting and I cannot pass up on the opportunity to heckle, oops, I mean support him. I am combining the meeting with a few meetings in Harrisville and Parkersburg, making a two day trip out of it.
how did that meeting go