Overriding Royalty Interest

Published at 11:55AM - 20/01/15

The Overriding Royalty Interest is an agreement, entitling its holder a percentage of production or its monetary equivalent.

The percentage the holder receives, whether produce or is monetary equivalent, is free from all costs of drilling or production.

The Overriding Royalty Interest is typically granted upon the granting of the Lease, however the Overriding Royalty Interest will expire with the lease and once production ceases.

 

 

OIM