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Mineral rights determine who has control over the minerals beneath the land. When assigning an ORRI, you need to ensure that the mineral rights are intact, like making sure the keys to your house are yours before you let someone in!
Yes, you can assign your ORRI to multiple parties, but you'll need to be clear about how profits are shared. It’s like splitting the bill on a dinner—everyone should know what they’re responsible for!
Before diving in, think about the lease's production history, the geology of the area, and any legal requirements. It’s best to put on your detective hat and investigate all the details!
When reserves have the right to pool, it means that multiple leases or interests can be combined to streamline operations and maximize production potential. It’s like sharing a pie with friends so everyone gets a slice!
When you assign an ORRI, you give someone else the right to collect a portion of future royalties from the lease. Think of it like passing the baton in a relay race, giving someone else the chance to snag those future profits!
An overriding royalty interest (ORRI) in a non-producing lease is a share of the profits from future oil or gas production, even if the lease isn't currently producing any resources. It's like having a ticket to a potential gold mine, even if the mine isn't open yet!