Royalty interest verses Non Participating RI


Hi, I currently have royalty interest in Martin County, Texas and just received a new division order for Non Participating Royalty Interest for the same wells. Can anyone explain what this means. Also, how can I find out where section 9 block HA is located in Martin County? Thank you!


Many times they are used interchangeably. The main difference I’ve seen is that often times a “royalty interest” is tied to a specific lease/well, whereas a “non-participating royalty interest” is often times perpetual in nature and applies to all future lease/wells.


Ok great. Thank you.


A non-participating royalty interest is typically a royalty that is severed from the mineral estate. Unlike an overriding royalty interest that is typically tied to a lease, an NPRI is tied to the mineral estate so is not subject to loss like an ORRI. NPRI’s are typically non-executory interests so that you are entitled to receive the pro rata portion of the NPRI, but typically do not negotiate leases or receive lease bonuses.


Thank you. Do you know how I can find where in Martin County section 9, block HA is located?


Do you have a survey name or any other identifying information for the tract?