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The value of your ORRI can fluctuate with market conditions, just like the stock market. When oil and gas prices are high, your interest could be worth more, and when they dip, it might feel like you’re holding onto a rock.
Holding an ORRI in a non-producing lease carries the risk that production might never happen. It’s like betting on a horse that hasn’t been running – you might never see any returns.
Yes, you can transfer your ORRI, much like passing on a family heirloom. Just make sure everything is in writing and all parties are on the same page.
Reserves right to pool allows for combining multiple leases to maximize production. Think of it as potluck dinner – you’re gathering goodies from different hosts to make one big feast!
Absolutely! Having an ORRI on a single lease means you earn a royalty from that specific property. It’s like having a stake in a single restaurant – you get a cut of the profits from just that one place.
Non-producing means that the lease isn't currently generating oil or gas. It’s like having a ticket to a concert that hasn’t started yet, you’re waiting for the show!
An overriding royalty interest is a share of the production from a lease that is not subject to the costs of production. Think of it like getting a slice of the pie without having to bake it!