Newbie here, trying to understand the terms, concepts, and which ones relate to me.
I have recently inherited some “mineral rights” (in New Mexico). My father owned 160 acres actual land, and 50% of the mineral rights on that land. These 80 acres of mineral rights have now been turned over to his children, to be split evenly between us. For sake of clarity, I’ll keep all questions regarding the 80 acres as a whole (not my smaller portion of it).
Here are my questions so far. Could anybody help clarify these for me?
I own “mineral rights” Does that mean I am a “royalty owner” too? Are those terms interchangeable?
I see a lot of questions about “leasing”… Does owning mineral rights have to do with leasing? (by owning the mineral rights am I automatically “leasing” to every operator? or are those two unrelated terms?)
I see the term ORRI in here a lot. I looked up the definition ( An ORRI is a fractional, undivided interest with the right to participate or receive proceeds from the sale of oil and/or gas. It is not an interest in the minerals, but an interest in the proceeds or revenue from the oil & gas minerals sold.) - As a mineral rights owner do I also own ORRI? Or is there a difference between “mineral rights” and ORRI? Can you own BOTH? Any clarity on ORRI vs mineral rights?
The 80 acres we inherited fall within 2 “properties” (as they are called on the document), within New Mexico (S:12, T:25S, R: 28E & S:11, T:25S, R: 28E). When I look up those two properties (by range, section, and township), I find 7 wells on one property, and 5 wells on the other property. Does this mean that we should be getting checks from every single well listed on those two “properties”? Or is there another way to determine which producers one should be expecting payments from?
What is the correct terminology of “property” (ie: S:12, T:25S, R: 28E) <–This is the information that is always asked for when looking up mineral rights. What do you call this? A property? A unit? A section?
I really truly appreciate any help on these newb questions. Just browsing has been very educational and helped me to clarify my questions.
Thanks for any and all answers in advance!!