How is the Overriding Royalty Interest (ORRI) structured in oil rights?

Answer by  Christian9247 (5042)

A person owns a share of the actual oil production. However it is a clear cut and dry number that you are paid as a shareholder but you don't have the option to increase, develop or even take in a bonus from anything advancements the oil company in question happens upon.

Answer by  StarOne (941)

It all depends on what the contract states the overriding royalty interest is. If you have a current signed contract or considering signing on, read it thoroughly.