Royalty interest verses Non Participating RI


#1

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!


#2

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.


#3

Ok great. Thank you.


#4

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.


#5

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


#6

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