# Overlay royalties

**URL:** https://www.mineralrightsforum.com/t/overlay-royalties/55177
**Category:** Oil and Gas Leasing Help
**Created:** [January 23, 2020, 3:20pm UTC](https://www.mineralrightsforum.com/t/overlay-royalties/55177 "2020-01-23T15:20:09Z")
**Posts on this page:** 7
**Page:** 1

<div class="post-metadata">

### Author: ![snoggledog](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/s/f1d935/32.png) [@snoggledog](https://www.mineralrightsforum.com/u/snoggledog)
#### Post date: [January 23, 2020, 3:20pm UTC](https://www.mineralrightsforum.com/t/overlay-royalties/55177/1 "2020-01-23T15:20:09Z")

</div>

What are overlay royalties?

---

<div class="post-metadata">

### Author: ![Steve\_Durrett](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/s/8baadc/32.png) [@Steve\_Durrett](https://www.mineralrightsforum.com/u/Steve_Durrett)
#### Post date: [January 23, 2020, 3:42pm UTC](https://www.mineralrightsforum.com/t/overlay-royalties/55177/2 "2020-01-23T15:42:04Z")

</div>

Never heard the term. Do you mean Overriding Royalties?

---

<div class="post-metadata">

### Author: ![snoggledog](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/s/f1d935/32.png) [@snoggledog](https://www.mineralrightsforum.com/u/snoggledog)
#### Post date: [January 23, 2020, 5:37pm UTC](https://www.mineralrightsforum.com/t/overlay-royalties/55177/3 "2020-01-23T17:37:56Z")

</div>

That could be, what are overriding royalties?

---

<div class="post-metadata">

### Author: ![Steve\_Durrett](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/s/8baadc/32.png) [@Steve\_Durrett](https://www.mineralrightsforum.com/u/Steve_Durrett)
#### Post date: [January 23, 2020, 6:14pm UTC](https://www.mineralrightsforum.com/t/overlay-royalties/55177/4 "2020-01-23T18:14:51Z")

</div>

Royalties are derived from mineral ownership and are spelled out in a Lease Agreement. The royalty is the amount, usually a set percentage, that the Operator (or Working Interest Owners) will pay the mineral owners from production.

An Overriding Royalty is derived from a contractual arrangement and is a burden on the Working Interest and not the Mineral Interest.

---

<div class="post-metadata">

### Author: ![snoggledog](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/s/f1d935/32.png) [@snoggledog](https://www.mineralrightsforum.com/u/snoggledog)
#### Post date: [January 24, 2020, 2:39pm UTC](https://www.mineralrightsforum.com/t/overlay-royalties/55177/5 "2020-01-24T14:39:23Z")

</div>

Thank you Steve. I think I understand now.

---

<div class="post-metadata">

### Author: ![M\_Barnes](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/m_barnes/32/10942_2.png) [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [January 24, 2020, 5:05pm UTC](https://www.mineralrightsforum.com/t/overlay-royalties/55177/6 "2020-01-24T17:05:50Z")

</div>

For those of us who inherited an ORRI (OverRiding Royalty Interest), it could be due to an older agreement with the Operator and a geologist or landman who put a deal together back “in the old days”. They were paid in the override instead of a salary or cash. Other reasons also, but those are common ones.

---

<div class="post-metadata">

### Author: ![system](https://www.mineralrightsforum.com/uploads/db5755/original/3X/6/c/6c7c56608c843272ad6e3662ce9562a5956f173e.png) [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [April 22, 2020, 3:20pm UTC](https://www.mineralrightsforum.com/t/overlay-royalties/55177/7 "2020-04-22T15:20:12Z")

</div>

This topic was automatically closed after 90 days. New replies are no longer allowed.