# ORRI - Overriding Royalty

**URL:** https://www.mineralrightsforum.com/t/orri-overriding-royalty/47967
**Category:** Lea County, NM
**Created:** [July 1, 2019, 10:23pm UTC](https://www.mineralrightsforum.com/t/orri-overriding-royalty/47967 "2019-07-01T22:23:01Z")
**Posts on this page:** 5
**Page:** 1

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### Author: ![Ronald\_barnes](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/ronald_barnes/32/13140_2.png) [@Ronald\_barnes](https://www.mineralrightsforum.com/u/Ronald_barnes)
#### Post date: [July 1, 2019, 10:23pm UTC](https://www.mineralrightsforum.com/t/orri-overriding-royalty/47967/1 "2019-07-01T22:23:01Z")

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I have 920 acres in Section 23 and 24 in Lea County with 0.5% ORRI, so net 37 Net royalty acres. Just received an offer for 7500.00 per acre. What is going on in this area and is this a reasonable offer?

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### Author: ![NMoilboy](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/nmoilboy/32/20759_2.png) [@NMoilboy](https://www.mineralrightsforum.com/u/NMoilboy)
#### Post date: [July 2, 2019, 2:51am UTC](https://www.mineralrightsforum.com/t/orri-overriding-royalty/47967/2 "2019-07-02T02:51:05Z")

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Section 23 and 24 of what Township?

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### Author: ![Ronald\_barnes](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/ronald_barnes/32/13140_2.png) [@Ronald\_barnes](https://www.mineralrightsforum.com/u/Ronald_barnes)
#### Post date: [July 2, 2019, 5:37am UTC](https://www.mineralrightsforum.com/t/orri-overriding-royalty/47967/3 "2019-07-02T05:37:57Z")

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Township 22S Range 32E

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### Author: ![NMoilboy](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/nmoilboy/32/20759_2.png) [@NMoilboy](https://www.mineralrightsforum.com/u/NMoilboy)
#### Post date: [July 2, 2019, 2:42pm UTC](https://www.mineralrightsforum.com/t/orri-overriding-royalty/47967/4 "2019-07-02T14:42:50Z")

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_“What is going on in this area?”_

Nothing is going on in your lease (NM-081633). No permits or obvious signs of intent to develop. Held by a bunch of old vertical stripper wells.

Oxy permitted a large number of wells in Avogado State 3031 Unit a few miles to the SE.

_“Is this a reasonable offer?”_

I think it’s low. Highly scientific answer, I know. 😃 I’d say there are about 5 zones that **could** get developed there. Now nobody should be paying you for everything in the success case, but $7,500/acre is paying for around 1.5 zones and maybe they should be paying for 50% more. Again, that’s very subjective. Timing matters to people who would buy your minerals. I don’t know what EOG is going to do, they have a lot of wells to drill all over, and because this is HBP they may not get here for a good long while.

 ![image](https://www.mineralrightsforum.com/uploads/db5755/original/2X/5/59f95ee22819892bbb50551fd7c2e43b08b748c9.jpeg)

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### Author: ![Kenny\_DuBose](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/kenny_dubose/32/5102_2.png) [@Kenny\_DuBose](https://www.mineralrightsforum.com/u/Kenny_DuBose)
#### Post date: [July 10, 2019, 8:33pm UTC](https://www.mineralrightsforum.com/t/orri-overriding-royalty/47967/6 "2019-07-10T20:33:44Z")

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