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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.

Nate Richards
Nate has over 18 years of software engineering and consulting experience. He founded Entrance in 2003. Nate is the past President of the Board of LifeHouse Houston, a Christ-centered maternity home ministry, and is past Executive committee member and Treasurer of Houston Achievement Place, a foster care and social skills training non-profit organization.
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