NPRI question


We have an NPRI in 20 acres in Reeves based on a reserved interest found in a 1928 deed when the property was sold, the reserved interest is 1/32nd. Division Orders have been signed and heirs are receiving monthly royalty payments. There is no “lease” signed by the heirs, only DO’s. Its my understanding the 20 acres is part of a 300+/- acre unit. My question, if additional wells are drilled and begin producing within the unit, will the heirs share in those, or is the NPRI only for the 20 acres?



Hi, Randy. You will need some specific advice, but, in my case, the 1/32nd NPRI interest was divided among the entire 640 acres, so that my family became a party to any well in the entire section. In your case, possibly 300 acres, being the south half, north half, east half or west half. It may be possible, too, that the interest does only cover those literal 20 acres, but it would surprise me. Being nowhere near Reeves County, I purchased documents such as deeds and leases from, and found them helpful. I also met an executive rights holder in my section on here who has been extremely helpful with his knowledge.