Overriding Royalty Interest (ORRI)
ORRI refers to a royalty in excess of the royalty provided in the oil & gas lease. Usually an override is added during an intervening assignment.
How it’s important to us
Along with NRI and GWI, ORRIs will often appear on a single DOI record in a well. ORRIs are created out of the working interest and do not affect mineral owners. An overriding royalty interest is often kept or assigned to a geologist, landman, brokerage or any entity that was able to reserve an interest in the properties. An ORRI may be sold as a means of raising capital. It is a fractional, undivided interest with the right to participate or receive proceeds from the sale of oil and/or gas. It is an interest in the proceeds or revenue from the oil & gas minerals sold. ORRIs are not bound to carry their portion of development or operating costs.