Overriding Royalty Interest (ORRI)

An Overriding Royalty Interest IORRI), commonly referred to as an override, is a fractional, undivided interest granting the right to receive proceeds from the sale of oil and/or gas.
It is not an interest in the minerals themselves, but rather in the proceeds of the sale of oil and gas.
Overriding Royalty Interest is carved out of the working interest (WI) of the well and usual conveyed to geologists, landmen, and other oil and gas professionals as financial compensation.
An overriding Royalty interest is free from the cost of production. The owner does not invest in drilling activities or sharing well-operating expenses.
Overriding Royalty Interest (ORRI) agreements terminate when the oil and gas terminates. It is not an interest in the mineral, but rather a share of the production. When the well or wells become uneconomical, the lease is released, terminating both the royalty and overriding royalty interest.
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[@adamlittle1361]

Hey Danna, subscriber 400! Keep up the good work :)

[@BlueMesaMinerals]

Thanks!

[@geronimotanto2229]

Im getting bombarded with phone calls and letters from LLC`s wanting to buy my mineral interest in Reeves County Pecos ,Texas , HELP !!! I filled out the sell request on your website

[@BlueMesaMinerals]

That might indicate that they know something you don't. There might be new permits on your tracts. A lot of buyers are chasing "drill bits", meaning they want to buy mineral rights before new wells are complete so they can get the initial revenue (and use that to flip the minerals at an auction). This is not my business model, but it's a popular one.

[@dannahblumenau2140]

​@@hwy6163 Mineral rights are generally passed from generation to generation or purchased by accredited investors in various ways. Very few places sell mineral rights to the general public, and they usually require the buyer to be an accredited investor (they will often verify accreditation status). It might be hard to rate auction houses or brokers because each mineral deal is very different and comes with both known and unknown risks. Buying mineral rights can be extremely risky. If there were going to be a rating system, it would probably have to be based on the company and people you are interacting with rather than specific deals. This information may be available by checking the Better Business Bureau or Google reviews.

[@dannahblumenau2140]

@@hwy6163 It can be very hard for a new mineral owner to know and understand what they own and the potential value. It may be worth hiring a landman to look over what you own and tell you if that is a reasonable price. A landman can tell you if there are new permits or upside potential that you are not aware of.

[@geronimotanto2229]

@@hwy6163 Where are you looking to buy ?

[@geronimotanto2229]

@@hwy6163 Yes, I think ive been contacted by every single one already , Ive been trying to sell seriously for a few months now

[@raphaelcabrera1271]

Keep doing videos.

[@BlueMesaMinerals]

Thank you! Are there any particular topics that you would like to see?

[@raphaelcabrera1271]

Hello, are you able to talk about oil Arbitrage?

[@BlueMesaMinerals]

@@raphaelcabrera1271 Unfortunately, I don't really know much about oil arbitrage. My focus is solely on mineral rights and royalties.