3 related Questions listed below …….
- In Texas, as listed on a Division Order for “Type of Interest”, I (as a mineral owner) am trying to understand the difference between “Royalty Interest” (RI) and “Non-Participating Royalty Interest” (NPRI).
Is the distinction that with a NPRI the mineral owner has fewer rights which would include not sharing in a lease bonus or ability to execute a lease? Any other differences between a NPRI and a RI?
Where would I, as the mineral owner, look to verify if I have a NPRI or a RI? Would this be listed in the governing lease? And what terms or wording would I look for to determine which type of royalty interest I would have?
The new well listed on the Division Order is, at the surface, located in an existing “Unit” ……. HOWEVER the bottom depth of the new well extends to BELOW the bottom depth of the Unit Agreement. Could this “Non-Participating Royalty Interest” listing possibly mean that this new well does not “participate” in the terms of the existing “Unit Agreement”?
I’ve asked the Operator who issued this Division Order to clarify the meaning of the NPRI as shown on the Division Order, but I have not received a response.
Is it possible that the terms of a lease could be changed by listing the incorrect wording for “Type of Interest” on a Division Order?
When signing a Division Order involving a Texas location should the mineral owner always hand write on the Division Order “No terms of the lease are to be changed in any way and I am not ratifying an oil or gas contract.”? If yes, is that the correct legal wording to use? If not, what is?