We use cookies to improve security, personalize the user experience, enhance our marketing activities (including cooperating with our marketing partners) and for other business use.
Click "here" to read our Cookie Policy. By clicking "Accept" you agree to the use of cookies. Read less
Generally, once you convert to a working interest, reverting back to an overriding royalty interest isn't straightforward and would likely require a new agreement or negotiation.
Yes, there are usually specific legal and procedural requirements to follow for the conversion, which might include providing notice to other parties and ensuring compliance with contracts.
Converting your interest may change your income stream; while a working interest can lead to higher returns if the well produces well, it also means you’ll take on costs that you wouldn’t with an overriding royalty interest.
A working interest is a share in the ownership of a well that involves responsibility for its costs and operations, meaning you have a stake in the expenses as well as the profits.
An overriding royalty interest is a share of the production income from a well that doesn’t involve any investment in the drilling or operation of that well.
To elect to convert interest to a party means that a stakeholder can change their interest in a well from one type to another, specifically from an overriding royalty interest to a working interest.
Trusted and secure by over 3 million people of the world’s leading companies
Arlington Texas Notice of Payout, Election to Convert Interest to Party With Right to Convert An Overriding Royalty Interest to A Working Interest