mineral.land

Selling a non-participating royalty (NPRI) or overriding royalty (ORRI) in Texas

You don't need executive leasing rights to sell a royalty stream. We buy perpetual non-participating royalty interests (NPRIs) carved out of the mineral estate and leasehold overriding royalty interests (ORRIs) carved out of working interests.

  • Updated
  • Perpetual NPRIs (Royalty Deeds) & Leasehold ORRIs (Assignments)

This page is general information from a direct buyer, not legal, tax, or investment advice.

In one paragraph

A non-participating royalty interest (NPRI) is carved out of the mineral fee by a deed and survives the expiration of any single oil and gas lease (unless created as a term royalty). An overriding royalty interest (ORRI) is carved out of a specific oil and gas lease by an assignment from the lessee; like an NPRI, it bears zero drilling or operating expense, but an ORRI typically expires if the underlying lease terminates and has no renewal-and-extension ("anti-washout") clause.

How we figure net royalty acres for an NPRI vs. an ORRI

  1. Fixed-fraction NPRI (such as "a 1/16 royalty on all oil and gas produced"): Because a 1/16 fixed royalty is half of the standard 1/8 (0.125) benchmark, 100 gross acres subject to a 1/16 fixed NPRI equals 50 net royalty acres (NRA) regardless of what royalty rate the executive owner negotiates on a new lease.
  2. Floating-fraction NPRI (such as "1/2 of the royalty"): Under Texas Supreme Court decisions including Hysaw v. Dawkins (2016) and Van Dyke v. Navigator Group (2023), a floating NPRI scales with the royalty rate in the active lease. If a 100-acre tract is leased at a 1/4 (0.25) royalty, a "1/2 of royalty" NPRI receives a 1/8 gross royalty, which equals 100 NRA while that lease stays in force.
  3. Overriding royalty interest (ORRI): An ORRI of 2% (0.02) across a 640-acre leasehold unit is converted to NRA on the same 1/8 basis: 640 acres × (0.02 ÷ 0.125) = 102.4 NRA. When we review an ORRI, we pull the assignment that created it and check whether the underlying leases are held by production across all depths or subject to depth-release clauses.

Ask for an offer on an NPRI or ORRI

Select NPRI or ORRI in the form and share the county, operator, or recording reference from your deed or assignment. Sending this form doesn't commit you to anything.

Who's on the other side: mineral.land, buying for our own account.

Rather talk? (307) 263-8515 or hello@mineral.land.

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