Good evening, I’m quite new at this, but I would like to ask if buying ORRI has waned in Lea County.
I had some offers early last year, but when I wanted to sell I heard it may be awhile before offers come in again. What is the status for selling right now or in the near future? Thanks,
They are always wanting to buy, but most of the time not at your price! To get a better understanding you need to put location of your minerals in Lea Co. GOOD LUCK.
Welcome to the world of oil and gas production, Lu Ann! The biggest hurdle for every newcomer, I would imagine, is learning the lingo. There’s so much of it, it’s like speaking a foreign language! But to help you out, the term “ORRI” stands for Overriding Royalty Interest" and it’s not really a royalty at all. It’s a tiny piece of leasehold working interest carved out by the owner of the lease (the Lessee owner), out of only their share of ownership in the lease, NOT the royalty owner’s share. The only way to own an ORRI is for the Lessee (oil company who took the lease or currently owns the lease) to create it using a document called an Assignment. It can’t be created using a Deed.
If you did, in fact, inherit or otherwise come into ownership of an ORRI, I apologize for the terminology lesson. But maybe there are others reading this who would like to understand the difference between an ORRI and an RI–the true lease royalty owned only by the Lessor mineral owner. 
An assignment how do they word one these assignment to create a ORRI?
Here is an example of a recital for an overriding royalty interest.
https://www.sec.gov/Archives/edgar/data/1349436/000119312511075387/dex105.htm
Generally, ORRI is carved out of WI without the burden of expenses. Used in trade for services many times, such as when a geologist works on a project, they are often offered an ORRI as part of their compensation.
I have an ORI on three wells in Lea County. These wells were initially operated by Paladin who took bankruptcy. Then they were apparently purchased by POGO and then payment quit. Reaching out to POGO I was told that the wells were sold to a group called BDX (I think) I tracked them down and they confirmed that they had indeed bought out POGO’s interest and were busy setting up the data in their system.
Now we are 60 days out and no paperwork and no payments. I feel certain that this new operator is getting paid buy they just say to be patient.
Any guidance is appreciated.
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