I inherited (from Mum and Aunt, originally from geologist Grandpa in 1951) an over-riding royalty interest of 25/640th of 1/8th of gross production from the land and lease, or any renewal or extension therof, of a property in Upton County, Tx. This included reversionary rights, if any.
I received a small royalty from some older vertical wells and these have been paid as NRI. My Upton County tax appraisals show my ownership as Override Royalty.
Recently, a new producer is now drilling horizontal wells across the section and my royalty payments are split (with equal production figures), between Non-Participating Royalty Interest and Overriding Royalty. I’m confused as to why this would be.
I have had quite a few issues with this operator, they will not provide any back up information. The O&G leases are not available online so any advice would be appreciated.
Question about the reference to NRI vs NPRI. These are different. Uusally the NRI on a check detail is ‘net revenue interest’ which is a non-op working interest in the well. The property taxes for NRI are paid by the operator and then charged back proportionately to the WI. Are there any JIB deductions on the check or by a bill? Geologists are sometimes granted interests in the leases and/or wells by the oil company, which would be in form of ORRI and/or NRI. An NPRI comes through a deed from the mineral owner. You would receive property tax assessments on an NPRI. Do you have the recorded deeds from your mother and aunt into your name? They might be available online. A landman who works that area could pull the filings in your grandfather’s name from the deed records so you can better determine what you own.
Thanks. Yes, I have the recorded deeds from both in my name and I pay property tax assessments. I’m trying to learn and do as much as possible and NARO has been a good resource however, I think I will need help to sort this out.