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Like a double-edged sword, an ORRI can have risks, including market volatility and the chance that production may never start. Always do your homework to understand the landscape!
Typically, the company that holds the lease will provide statements or reports. It’s a good idea to stay in touch with them to keep the lines of communication open!
A single lease can simplify things, as it means you only have to keep an eye on one set of terms and one location, rather than juggling multiple leases.
Yes, having the right to pool means you can combine your reserves with others, which can lead to more efficient production and hopefully, better payouts!
In a non-producing lease, you won't be seeing any oil or gas flowing just yet, but your ORRI allows you to potentially benefit if production starts down the line.
An overriding royalty interest (ORRI) is a slice of the pie from oil or gas production, allowing you to receive a percentage of the revenues without owning the land or drilling for it yourself.